Air China Ltd. has no intentions to fully acquire Cathay Pacific Airways Ltd., a director at the mainland carrier told the South China Morning Post, on the back of takeover rumors as the Hong Kong airline came under pressure due to anti-government protests.
"Based on what I know, I wouldn't think that is anywhere on the agenda, no way," independent nonexecutive director Stanley Hui told the publication when asked if Air China, which holds a 29.99% stake in Cathay Pacific, might fully take over the Hong Kong airline.
A single party can have a maximum 29.99% stake in a listed Hong Kong company and is required to make an offer for the rest of the shares if it breaches the 30% mark.
Hui said Air China has "every confidence" in the management of Swire Pacific Ltd., Cathay Pacific's largest shareholder with a 45% stake.
Speculation of an aggressive takeover surfaced after the Civil Aviation Administration of China issued an aviation safety warning to Cathay Pacific over its employees partaking in pro-democracy protests.
Cathay Pacific, meanwhile, warned of a "significant impact" on its earnings in August and beyond amid the ongoing protests in Hong Kong that have affected travel demand and led to the departure of staff and executives.
