Cathay sells Hactl holding before building rival terminal

SWIRE Pacific, together with Citic Pacific, which also has a stake in Cathay Pacific Airways, has sold the three companies' joint 40 per cent share in Hong Kong Air Cargo Terminals Ltd (Hactl), the airport's No 1 ground handler because Cathay is now building a rival cargo terminal of its own.

Remaining Hactl shareholders, Jardine Matheson, Hutchison Port Holdings, Wharf Holdings and China National Aviation Corporation, will pay HK$2.56 billion (US$330 million) for Swire-Cathay-Citic shares, according to a statement to the Hong Kong stock exchange.

Said the Hactl statement: "The increased investment in Hactl by its continuing shareholders clearly demonstrates their confidence in Hactl's long-term growth and development. Hactl will benefit from the excellent prospects for the expansion of air cargo in the region and from Hong Kong International Airport's status as the world's leading air cargo hub."

Said Hactl managing director Anthony Wong: "The Hactl management team remains fully committed to ensuring that the company maintains its award-winning status as the leading air cargo terminal in the world. We look forward to continuing to partner with our customers to support their growth in Hong Kong and the region."

(Source: www.schednet.com)