The world's strongest aviation portfolio emerges
Air China, Cathay Pacific and other four companies integrate their shareholding to enhance the value of shareholders
□ Our reporter Wu Li
Yesterday, the shareholders of Air China, Cathay Pacific, AVIC Industrial and CITIC Pacific held special shareholders' meetings in Beijing and Hong Kong, respectively, and voted at the meeting to approve the proposal of shareholding integration. This agreement will establish the shareholding structure between Cathay Pacific and Air China, make Dragonair Limited (Dragonair) a wholly-owned subsidiary of Cathay Pacific, and urge China's flagship airline Air China and Hong Kong based Cathay Pacific to implement the operation agreement between the two parties.
The above voting procedure was launched at the special shareholders' meeting held by the four companies yesterday. Air China The shareholders' meeting was held in Beijing, while the special shareholders' meetings of Cathay Pacific, CITIC Pacific and AVIC Industrial were held in Hong Kong at the same time.
This shareholder's vote is an important step to complete the whole transaction. After meeting other relevant conditions, including obtaining the required regulatory approval, the new arrangement will come into effect on the date later announced. The signing of this restructuring shareholding agreement has created the strongest aviation portfolio in the world, which will benefit both Chinese aviation industry and passengers, and thus strengthen the positions of Beijing and Hong Kong as major aviation hubs in the region.
The signing of this restructuring agreement will bring the following four major achievements to the parties: (1) Air China holds strategic equity in Cathay Pacific; （2） Cathay Pacific increased its strategic investment in Air China; （3） Ganglong became a wholly-owned subsidiary of Cathay Pacific Airlines; （4） Air China and Cathay Pacific have been able to implement the operation agreement agreed by both parties, including: the two parties act as sales representatives for each other in Greater China, that is, Air China is solely responsible for Cathay Pacific's passenger transport sales in the mainland, and Cathay Pacific is solely responsible for Cathay Pacific's passenger transport sales in Hong Kong, Macao and Taiwan; Expand the sharing of route codes between mainland China and Hong Kong; To operate joint airlines connecting major cities in mainland China and Hong Kong and share profits; It is suggested to establish a joint venture freight company in Shanghai; To retain Dragonair's status as a major airline for at least six years; Strengthen cooperation in many other business areas.
After Cathay Pacific Group expanded, Swire Co., Ltd. still retained its position as a major shareholder, while Dragonair will continue to operate under the original brand under the management of Cathay Pacific. The strengthened shareholding relationship and operation agreement between Air China and Cathay Pacific have benefited both parties and provided many opportunities for closer operation cooperation.
All parties to the agreement highly affirmed that the integrated shareholding agreement was voted. Li Jiaxiang, Chairman of Air China, said that the shareholder's approval of the above agreement will lay the foundation for Air China and Cathay Pacific, passengers of both sides and wider stakeholders to realize the benefits of this important transaction. The implementation of the restructuring agreement and the operation agreement will create a new force for the aviation industry and help the Chinese aviation industry, as well as the hubs in Beijing and Hong Kong, to maximize their potential.
Bai Jitu, Chairman of Swire, believes that the voting for the proposal of integrated shareholding is an important step to complete this transaction with historic significance and far-reaching impact. In the world's most exciting and ever-changing aviation market, the transaction has created a powerful aviation portfolio with infinite potential; It also shows that Swire Group, as the main shareholder of Cathay Pacific, has made a strong commitment to Cathay Pacific, a Hong Kong based airline, in terms of long-term development and expansion strategies.
"I'm glad that Cathay Pacific and the shareholders of other related enterprises all support this proposal. After the completion of the transaction, Cathay Pacific can take over Hong Kong Dragon. At the same time, we should strengthen the partnership with Air China and consolidate Beijing and Hong Kong as the major aviation hubs in the Asia Pacific region." Chen Nanlu, Cathay Pacific's chief executive, said after the shareholders' meeting.
In addition, Kong Dong, Chairman of AVIC Xingye, and Rong Zhijian, Chairman of CITIC Pacific, congratulated on the adoption of the shareholding integration proposal, and believed that it would strengthen the cooperation between relevant companies to enhance the value of shareholders of all parties.
