Swire Pacific to Sell Stake in Cathay Pacific to Fund Debt Repurchase
By P.R. Venkat
Hong Kong conglomerate Swire Pacific is selling a portion of its stake in Cathay Pacific Airways via a share placement to partially fund a US$653 million bond repurchase.
The conglomerate said Wednesday it is placing 362.65 million Cathay Pacific shares at 13.20 Hong Kong dollars each, equivalent to US$1.68.
The offering represents a 7.7% discount to the airline's closing price of HK$14.30 on Tuesday and will generate gross proceeds of HK$4.79 billion.
Following the transaction, Swire Pacific's stake in Cathay will fall by nearly 6 percentage points to 39.15%.
"The company intends to retain a significant long term strategic shareholding in Cathay Pacific Airways," Swire Pacific said, adding that it doesn't intend to propose any material changes to the airline's governance or management.
J.P. Morgan, Morgan Stanley and HSBC are acting as placing agents for the deal.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
September 01, 2026 20:38 ET (00:38 GMT)
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