HONG KONG, Jan 8, 2026, 21:29 HKT
- Air China is selling 1.61% of Cathay Pacific for HK$1.32 billion ($170 million)
- Cathay says the move is “tactical”, with Air China still set to sit just under 30% after a planned buyback
- Filings show takeover-rule waivers and approvals are in play as the ownership shift goes through
Air China is selling 108.1 million shares in Cathay Pacific Airways, trimming a small slice of its holding in the Hong Kong carrier in a deal worth HK$1.32 billion ($170 million). Cathay Chief Executive Ronald Lam said the move was “only tactical” and that Air China would remain a long-term strategic shareholder. Reuters
The sale lands just as Cathay pushes ahead with a planned off-market share buyback from Qatar Airways, a transaction that would shrink the airline’s tradable share count and mechanically lift the percentage holdings of the remaining big owners.
Cathay said in a Hong Kong stock exchange filing that, after the disposal and the buyback, Swire Pacific’s stake would rise to about 47.65% while Air China’s would rise to about 29.98%. The company said Swire had applied for a waiver related to Hong Kong’s takeover rules, where certain jumps in ownership can trigger a mandatory general offer — a requirement to make an offer to all remaining shareholders.
Air China, in its own announcement, said the placement price was HK$12.22 a share and that completion was expected no later than Jan. 8. It estimated a profit before tax of about 182 million yuan ($25 million), and said it had agreed to a 180-day lock-up restricting further sales without the placing agent’s consent.
Cathay’s Lam said he viewed the stake cut as a portfolio move, not a change in direction. Air China said its stake would be maintained “at an appropriate level” and it remained optimistic about Cathay’s prospects.
Cathay shares were down about 2% on Tuesday, after rising more than 35% over the past year, Reuters reported. The airline has also told investors to expect strong second-half financial results, with 2025 full-year earnings set to exceed the HK$9.89 billion profit it reported for 2024.
Operationally, Cathay has signalled it is leaning more on adding flights to existing routes than on opening many new destinations this year. The comments came as the airline marked its 80th anniversary, including a nod to older branding with a return of a classic green-and-white livery.
But the ownership reshuffle still has moving parts. Cathay’s filing said the buyback and related steps remain tied to approvals and waivers under takeover and buyback rules, and the timetable depends on those conditions being met — a gap that can matter when stakes are sitting close to trigger thresholds.
