Rus News Journal

Chineses buy the Hong Kong airline for $1 mlrd

the Chinese airline Cathay Pacific Airways Ltd. Has reached agreements on purchase of Hong Kong airline Dragon Airlines Ltd. For 8,22 mlrd the Hong Kong dollars (1,02 mlrd US dollars).
Such statement was made today by representatives of the company. On terms of transaction Cathay Pacific will pay to shareholders Dragon Airlines 820 million Hong Kong dollars (105,6 million US dollars) cash, other sum will be financed for the account dopemissii actions. Now Cathay Pacific 17,8 % of actions Dragon Airlines belong.
Besides, on terms of transaction the parity of shareholders Cathay Pacific will be changed: a share of parent company Swire Pacific Ltd. The share of Chinese investment company CITIC Pacific Ltd will be reduced from 46,3 % to 40 %. The state company China National Aviation Co will be reduced from 25,4 % to 17,5 %, and. Being parent company Dragon Airlines, will enter into share capital Cathay Pacific from shares in 7,34 %. The transaction should be confirmed shareholders of the companies within the next two months, transfers (C) Associated Press.
meanwhile, Cathay Pacific has informed on planned increase in the share in the Chinese airline Air China with 10 to 20 %. On conditions of this transaction Cathay Pacific will pay Air China 4,7 mlrd the Hong Kong dollars (605,5 million dollars), and Air China will get 10,16 % of actions Cathay Pacific for 5,39 mlrd the Hong Kong dollars (694,4 million dollars). Thus, the companies will merge for creation of a uniform air carrier with the main representation in Shanghai.