Swire in bid to take Haeco private for HK$3b

HONG KONG: Cathay Pacific Airways Ltd shareholder Swire Pacific Ltd said it plans to take maintenance unit Hong Kong Aircraft Engineering Co Ltd (Haeco) private for about HK$3 billion (RM1.52 billion), citing low levels of trade in its shares.

“Haeco has not raised any equity funds from the public equity markets for over 30 years and Swire Pacific sees no practicable opportunity for this to happen in the foreseeable future,” said the conglomerate in a statement.

Swire said it would offer HK$72 per share, a 63.6 per cent premium over Haeco’s previous close, to buy all outstanding shares it did not already own.

Haeco shares climbed nearly 58 per cent to HK$69.50, its highest level in nearly three years.

Swire holds 74.99 per cent of Haeco while independent shareholders hold the rest. The conglomerate said the move would save administrative and listingrelated costs.

The offer values the aircraft maintenance service firm at about HK$12 billion.

Haeco is one of the world’s largest independent aircraft maintenance, repair and overhaul (MRO) providers.

Cathay, in which Swire Pacific owns 45 per cent, is a major client and shares some of the board directors.

Haeco reported a HK$541 million annual loss last year, compared with a HK$975 million profit a year earlier, due in large part to impairments on its United States business.