Swire to buy back $6b shares

Swire Pacific (0019, 0087) announced a plan to repurchase HK$6 billion worth of both the "A" and "B" shares before May 2025.

The program will be funded from the available capital and cash reserves of the Hong Kong-based conglomerate, it said.

According to the buyback plan, the daily share repurchase volume will not exceed 25 percent of the average daily trading volume over the preceding 20 trading days. And the highest repurchase price will not be 5 percent higher than the average closing price in the last five trading days.

Swire said its board is of the view that conducting the buyback program is in the best interests of the firm and the shareholders as a whole. It will demonstrate the company's "confidence in its business outlook and prospects and would, ultimately, benefit it and create value for shareholders."

Its market cap stood at around HK$67.8 billion yesterday. The average daily turnover of the shares amounted to approximately HK$78 million for the six months before December, it noted.

Earlier, Swire sold the US Coca-Cola business for US$3.9 billion (HK$30.5 billion) to controlling shareholder John Swire & Sons. It paid a special dividend of HK$11.7 billion following the completion of the deal.

Its associate Cathay Pacific Airways (0293) on Monday said it had bought back 50 percent of the HK$19.5 billion worth of preferred shares from the government and will buy back the other half by July.

In other news, Sands China (1928) said its controlling shareholder plans to spend up to HK$1.95 billion, increasing its holdings in the Macau gaming firm.