Swire Pacific has completed an accelerated exchange transaction that reduces its holding in Cathay Pacific Airways to about 39.15%, or roughly 39.2%, after selling 362.65 million shares at HK$13.20 each and repurchasing HK$4.689 billion of bonds. The Hong Kong deal trims Swire’s ownership in the carrier while leaving it as Cathay’s largest shareholder.
The transaction combined a bond buyback with a share placement to retire nearly all of the exchangeable bond issue launched in June. Only about HK$11 million of the bonds remained outstanding after completion, with the structure designed to accelerate the conversion process rather than create any additional dilution beyond what had already been signalled.
Swire had previously outlined that full conversion of the bonds would bring its Cathay stake down from 45.1% to about 39.2%. The latest result is effectively in line with that level, while preserving the group’s long-term strategic shareholding. The company does not plan material changes to Cathay’s governance or management, and the move also strengthens Swire’s balance sheet.