Air China has confirmed plans to sell a small portion of its shareholding in Cathay Pacific, offloading a 1.61 per cent stake in the Hong Kong carrier.
The move will see Air China sell approximately 108.1 million Cathay Pacific shares for around HK$1.32 billion, reducing its holding in the airline to about 27.11 per cent.
Cathay Pacific chief executive Ronald Lam described the decision as a “tactical” adjustment, saying Air China would remain a long-term strategic shareholder in the airline.
Air China said in a statement that its shareholding in Cathay Pacific would be maintained “at an appropriate level” and that it remained optimistic about the carrier’s outlook.
Following the transaction, Air China’s stake is expected to rise to just under 30 per cent once Cathay Pacific completes a previously announced buyback of shares currently held by Qatar Airways. Hong Kong conglomerate Swire Pacific will continue to be Cathay Pacific’s largest shareholder.
Cathay Pacific shares dipped around 2 per cent following the announcement, despite having risen more than 35 per cent over the past year.
