Cathay Pacific Stake

Air China has boosted its stake in Cathay Pacific Airways from 17.49% to 29.99% after buying a block of shares from CITIC Pacific, the Chinese conglomerate.  The national carrier is understood to have paid 12.88 Hong Kong dollars ($1.65) per share, valuing the deal at 6.3 billion Hong Kong dollars ($812 million).  According to a joint statement the transaction will enable Air China and Cathay Pacific to “form a closer co-operative relationship that will serve as a platform for further cooperation” between the two carriers “and generate greater synergy”.