Cathay Pacific says has lifted Air China stake to 18.77 pct

Reuters
April 7, 2011

(Reuters) - Cathay Pacific Airways Ltd has slightly increased its stake in Air China Ltd , paying about HK$40 million ($5.15 million) for 5.48 million shares, a filing to the Hong Kong stock exchange showed on Thursday.

A Cathay spokeswoman on Thursday confirmed the acquisition and said Cathay's holding in Air China , the national flag carrier, had risen to 18.77 percent from 18.43 percent.

Hong Kong's dominant carrier, bought the Hong Kong-listed Air China shares, or H-shares, for an average HK$7.348 each, the filing said.

Cathay had said Air China was a good investment and it would increase its holding in the company.

Air China is a substantial shareholder of Cathay, owning nearly 30 percent as of the end of 2010, just behind that of Swire Pacific Ltd , which held about 43 percent of Cathay.

Shares in Cathay have fallen 10 percent this year, but have outperformed Air China, which dropped 16 percent in the same period. (Reporting by Alison Leung; Editing by Chris Lewis)