Swire Group executes share swap to repurchase Cathay Pacific bonds

Swire Group has successfully executed an accelerated share swap transaction involving the sale of Cathay Pacific shares and the repurchase of exchangeable bonds. The transaction includes the sale of approximately 363 million Cathay Pacific shares at HK$13.20 per share, representing a 7.7% discount to the previous day's closing price. This sale accounts for roughly 5.96% of Cathay Pacific's total issued shares.

The proceeds from the share placement, totaling approximately HK$4.787 billion, will be used to repurchase exchangeable bonds with a principal amount of approximately HK$4.689 billion. Swire expects to realize a gain of approximately HK$1.118 billion from the share placement, with an overall expected net gain of approximately HK$704 million after accounting for the bond repurchase.

Following the completion of this transaction, Swire Group's stake in Cathay Pacific will decrease to approximately 39.15%. Swire stated that the move is intended to strengthen its balance sheet and reaffirmed its intention to remain a long-term strategic major shareholder in Cathay Pacific.