Air China to sell 1.61% stake in Cathay Pacific for US$170 million
China's flagship carrier Air China sold108.1 million shares, representing about a 1.61 per cent stake in Cathay Pacific Airways for a total of $169.57 million.
After completing the sale, Air China will hold around a 27.11 per cent stake in Cathay Pacific, though that will rise to 29.98 per cent after the Hong Kong carrier completes a planned buyback of a stake owned by Qatar Airways.
Swire Pacific will remain the largest shareholder with a 47.65 per cent stake after the buyback.
Cathay Pacific Airways CEO Ronald Lam said that Air China's decision was a "tactical" move.
Air China said in a statement its shareholding in Cathay will be maintained "at an appropriate level" and it remained optimistic about the Hong Kong airline's prospects.
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