HONG KONG (XFN-ASIA) - Cathay Pacific Airways Ltd said the five-party restructuring agreement signed in June among the companies involved in its acquisition of Dragonair became unconditional on September 22 and the transaction is expected to be completed on September 28.
The five companies involved in the restructuring agreement are Cathay Pacific, Air China, China National Aviation Co Ltd(CNAC), Citic Pacific and Swire Pacific.
The companies announced in June a five-party agreement providing for Cathay's acquisition of all remaining shares in Dragonair that it did not currently own, amounting to an 82.21 pct stake.
Under the restructuring agreement, Cathay will subscribe to 1.18 bln new Air China shares on September 27 at an aggregate cash subscription price of 4.07 bln hkd, representing 3.45 hkd per Air China share, Cathay Pacific said in a statement.
Dealing in the 1.18 bln new Air China 'H' shares will commence on September 28, or as soon as practicable thereafter, it said.
Meanwhile, Cathay said it will issue to CNAC Ltd, Swire Pacific and CITIC Pacific 548.05 mln new company shares at 13.50 hkd each and will pay a cash consideration of 822.07 mln hkd on September 28 for its acquisition of 411.03 mln Dragonair shares at 20 hkd each.
Dealing in the 548.05 mln new Cathay shares will commence on September 29, or as soon as practicable thereafter, the statement added.
It also said Cathay will pay on November 20 a special interim dividend of 0.32 hkd per share registered by the company's shareholders at the close of business hours on October 27.
(1 usd = 7.8 hkd)
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© 2006 AFX News
