| FOR IMMEDIATE RELEASE | 25 May 2010 |
Swire Pacific Limited and its aviation associate Cathay Pacific Airways Limited today announced an agreement to sell their entire interests, 19.998% and 10% respectively, in Hong Kong Air Cargo Terminals Limited (HACTL) and HACTL Investment Holdings Limited (HIHL).
The interests in HACTL and HIHL are being purchased by existing HACTL and HIHL shareholders, namely Jardine Matheson & Co., Limited, The Wharf (Holdings) Limited, Mosgen Limited (a wholly owned subsidiary of Hutchison Whampoa Limited), Hutchison Port Holdings Limited and China National Aviation Corporation (Group) Limited.
The sale is valued at HK$1,279,872,000 for Swire Pacific and HK$640 million for Cathay Pacific. Both companies will use the proceeds for general working capital purposes.
The sale of its interests in HACTL by Cathay Pacific fulfils an undertaking made to the Airport Authority Hong Kong in March 2008 when the company was awarded, through its subsidiary Cathay Pacific Services Limited, the franchise to invest in, design, construct and operate a new air cargo terminal at Hong Kong International Airport (HKIA).
Cathay Pacific has already resumed work on the state-of-the-art HK$5.5 billion air cargo terminal, having suspended development in January 2009 as a result of the severe economic downturn at that time. The airline recently awarded the HK$4.2 billion contract for the construction of the terminal to Gammon Construction Limited in partnership with Hip Hing Construction Company Limited and the facility is scheduled to begin operations in 2013.
Swire Pacific and Cathay Pacific Chairman Christopher Pratt said: "The new cargo terminal represents a significant investment in Hong Kong and a clear commitment to continuing to develop the city as one of the world's most important international airfreight hubs. The addition of new capacity and more competition will help to stimulate the growth of air-cargo services to and from Hong Kong International Airport, which in turn will bring significant economic benefits to our home city."
Mr Pratt added: "The new cargo terminal is an important investment not just for Cathay Pacific, but also for Hong Kong, and will boost the competitiveness of HKIA as a centre for international and regional air cargo traffic. The terminal is a key part of our strategy to develop Hong Kong as a prominent air cargo hub. We are continuing to look at ways to develop our network and freighter frequencies out of Hong Kong. From January next year we will begin taking delivery of 10 new-generation Boeing 747-8 freighters, which will increase our capacity in line with growing demand."
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