Air China’s HK$1.32 billion Cathay stake sale ‘tactical’, Hong Kong carrier CEO says
Cathay Group CEO Ronald Lam also assures Air China will remain long-term strategic shareholder, as carrier unveils 80th anniversary events
Air China has sold part of its stake in Cathay Pacific Airways for HK$1.32 billion (US$167 million), but the Hong Kong carrier’s CEO has said the move will not affect the mainland airline’s role as a strategic shareholder.
Cathay Group CEO Ronald Lam Siu-por said on Tuesday that the sale of a 1.6 per cent stake in the company was a “tactical” move, as he unveiled events marking the carrier’s 80th anniversary.
“I believe and understand that this is only tactical. Air China will remain our long-term strategic shareholder. That is for sure,” Lam said.
Air China said it made a profit of 182 million yuan (US$26 million) from selling 108.08 million Cathay Pacific shares for HK$1.32 billion, and that upon completion of the deal, it would retain a 27.11 per cent stake in the airline.
The shares were sold at HK$12.22 each, a 6.6 per cent discount to Cathay’s last traded price on Monday.
But news of the share sale sent Cathay shares 2.6 per cent lower to end Tuesday at HK$12.75.