Swire, Cathay sell stakes in HACTL
Swire Pacific Limited and its Cathay Pacific Airways subsidiary have announced an agreement to sell their entire interests, 19.998 and 10 per cent respectively, in Hong Kong Air Cargo Terminals Limited (HACTL) and HACTL Investment Holdings Limited (HIHL). The interests in HACTL and HIHL are being purchased by existing HACTL and HIHL shareholders, namely Jardine […]
June 1, 2010
The interests in HACTL and HIHL are being purchased by existing HACTL and HIHL shareholders, namely Jardine Matheson & Co., Limited, The Wharf (Holdings) Limited, Mosgen Limited (a wholly owned subsidiary of Hutchison Whampoa Limited), Hutchison Port Holdings Limited and China National Aviation Corporation (Group) Limited. The sale is valued at HK$1.28 billion (US$164 million) for Swire Pacific and HK$640 million for Cathay Pacific. The sale of its interests in HACTL by Cathay Pacific fulfils an undertaking made to the Airport Authority Hong Kong in March 2008 when the company was awarded, through its subsidiary Cathay Pacific Services Limited, the franchise to invest in, design, construct and operate a new air cargo terminal at Hong Kong International Airport (HKIA).
Cathay Pacific has resumed work on the HK$5.5 billion air cargo terminal, having suspended development in January 2009 as a result of the severe economic downturn at that time. The airline recently awarded the HK$4.2 billion contract for the construction of the terminal to Gammon Construction Ltd in partnership with Hip Hing Construction Company Ltd and the facility is scheduled to begin operations in 2013.