Swire Pacific to raise $1.8 billion from Cathay Pacific share sale

Hong Kong-listed Swire Pacific (0019, 0087) said on Friday it will sell 153.1 million shares in Cathay Pacific Airways (0293) via a share placement, estimating net proceeds of HK$1.79 billion from the share sale.

The placing returns the conglomerate to its shareholding in Cathay Pacific Airways prior to the completion of the off-market share buyback by Cathay Pacific Airways from Qatar Airways.

The placement shares represent around 2.5 percent of the total issued Cathay Pacific shares as at March 13.

As of Friday, Swire Pacific is interested in around 47.64 percent of the total issued Cathay Pacific shares.

Swire Pacific expects to record a gain of around HK$365 million from the placement, with the net proceeds expected to be used for general working capital purposes.

The firm says the placing price was determined through arm's length negotiations between the parties with reference to the prevailing share price of Cathay Pacific, among other parameters.

The HK-listed conglomerate will remain the largest shareholder of Cathay Pacific, as per LSEG-compiled data.

In January, Air China (0753) said it would sell 108.1 million shares in the Hong Kong airline for HK$1.32 billion.

Reuters