Air Hong Kong Buyout
Cathay Pacific (CX, Hong Kong Chek Lap Kok) has announced plans to buy out DHL Group of its 40% stake in Air Hong Kong (LD, Hong Kong Chek Lap Kok).
Cathay Pacific, which owns the majority 60% stake, said in a Hong Kong Stock Exchange disclosure on Friday, July 7, that it had entered into a non-binding MOU which will take effect on December 31, 2018 ending the two sides' current joint venture and block space agreements.
Other terms of the deal include Air Hong Kong and DHL Group entering into a sale/leaseback transaction regarding the carrier's eight A300-600(F) freighters. A new block space agreement will also be negotiated under which Air Hong Kong will sell space to DHL on an agreed network of overnight Asian freight routes.
The value of the transaction has been put at around HKD36.3 million Hong Kong dollars (USD4.64 million).