Cathay Pacific Airways announced yesterday that it will sell a HK$1.9 billion $245 million stake in Hong Kong Aircraft Engineering Company Haeco to Swire Pacific, its largest shareholder.
Cathay Pacific has agreed to sell 20 million shares, or a 12.45% shareholding, at HK$91.83 per share, which is a 1.6% discount to yesterday's closing price. The deal is part of an effort to bolster its cash holdings as fewer people travel due to the global economic downturn. Cathay Pacific's passenger yield fell 19.7% during the first half, owing largely to double-digit declines in premium traffic. Cargo traffic has also been falling.
On Tuesday, the International Air Transport Association IATA predicted that...
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