Lyon: Taikoo A (00019) reduced its holdings in CATHAY PAC AIR (000293) by 9.6%, expected to be a stock adjustment.

Lyon released a research report stating that Swire Pacific A (00019) announced before the market opened today (13th) that it will issue 153 million shares of CATHAY PAC AIR (00293) at HK$11.74 per share, at a discount of 9.6% from the closing price of the previous day. After the sale, Swire Pacific will hold 2.797 billion shares of CATHAY PAC AIR, accounting for approximately 45.12% of the issued share capital. Swire Pacific will receive net proceeds of HK$1.789 billion from the sale and record a gain of HK$365 million. The sale is expected to be completed no later than the 17th of this month. The bank believes that the sale price is equivalent to 1.2 times the estimated market-to-book ratio for the calendar year 2027, or 6.7 times the estimated price-to-earnings ratio for the calendar year 2027. Although the market may interpret this negatively, this sale is likely to be to adjust Swire Pacific's stake in CATHAY PAC AIR. Prior to CATHAY PAC AIR repurchasing shares from Qatar Airways, its stake was 45%.