Cathay, Swire sell Hong Kong cargo terminal stake

Cathay, Swire sell Hong Kong cargo terminal stake    Cathay Pacific Airways and parent company Swire Pacific said Tuesday they have sold their nearly 30 percent joint stake in Hong Kong Air Cargo Terminals Ltd. (HACTL), Hong Kong's biggest air cargo terminal.
   The stake will be sold to existing HACTL shareholders (which includes Hutchison Whampoa and its terminal management subsidiary Hutchison Port Holdings) and will net a combined $246 million for Cathay ($82 million) and Swire ($164 million).
   Swire and Cathay said the proceeds would be used for 'general working capital purposes.'
   In 2008, Cathay was awarded a contract to invest, design, construct and operate a new air cargo terminal at Hong Kong International Airport, scheduled for opening in 2013. The airline said it recently resumed work on the terminal. Development of the terminal was suspended in January 2009 due to the economic downturn.
   'The new cargo terminal represents a significant investment in Hong Kong and a clear commitment to continuing to develop the city as one of the world's most important international air freight hubs,' said Swire Pacific and Cathay Pacific Chairman Christopher Pratt. 'The addition of new capacity and more competition will help to stimulate the growth of air cargo services to and from Hong Kong International Airport, which in turn will bring significant economic benefits to our home city.'