HK’s Swire Pacific sells US unit to controlling shareholder for $3.9 billion According to Reuters
© Reuters. FILE PHOTO: The Swire Group logo is seen in Hong Kong, China December 6, 2017. REUTERS / Tyrone Siu
(Reuters) – Hong Kong-based Swire Pacific (OTC:) Ltd said on Wednesday that it will sell its Swire Coca-Cola (NYSE:), US unit for $3.9 billion to a stock its controlling arm, John Swire & Sons Ltd.
Swire Pacific, which owns a 45% stake in Hong Kong’s flagship carrier Cathay Pacific Airways (OTC:), is expected to earn a consolidated profit of around HK$22.8 billion ($2.91 billion) from the sale.
After the sale takes place, Swire Pacific will propose a special dividend payment totaling HK$11.7 billion.
This agreement will help Swire Pacific strengthen its valuation, strengthen its balance sheet, enable a focus on Mainland China and Southeast Asia, and provide capital to invest in long-term investments, investment company said.
($1 = 7.8323 Hong Kong dollars)
