HK’s Swire Pacific sells U.S. unit to controlling shareholder for $3.9 billion

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Swire Pacific, which owns a 45% stake in Hong Kong’s flagship carrier Cathay Pacific Airways (OTC:CPCAY), expects a consolidated gain of about HK$22.80 billion ($2.91 billion) from the sale, it said.

Once the sale goes through, Swire Pacific will propose payment of a special dividend in aggregate of HK$11.7 billion, it added.

The deal will help Swire Pacific strengthen its valuation, shore up its balance sheet, allow it to focus on Greater China and Southeast Asia, and provide it capital to invest in long-term investments, the investment firm said.

($1 = 7.8323 Hong Kong dollars)