Swire Pacific’s Haeco to delist from Hong Kong bourse
- The conglomerate is buying up the remaining 25 per cent stake it doesn’t already own for HK$72 a share
Shares of Hong Kong Aircraft Engineering Company (Haeco), suspended since November 20 pending its privatisation, will be cancelled from trading on the city’s stock exchange on Thursday, according to a statement filed jointly by the company and its parent Swire Pacific to the Hong Kong bourse on Wednesday.
Approval for Haeco to privatise and delist, proposed in June by Swire Pacific which owns a 75 per cent interest, was granted by the High Court, without change, the statement said.
In afternoon trading, Swire’s shares ended the day down 0.12 per cent to HK$86.85, after swinging between minimal gains and losses throughout the day.
Swire Pacific would take the engineering company private by buying up the remaining stake for HK$72 a share, it said in June. The move would also save administrative and listing-related costs, it said.
The decision was made over the underperformance in trading of Haeco’s shares, meaning it no longer provided worthwhile funding for the company.
Haeco last traded and closed at HK$71.60.