Air China(00753.HK)：Sells 108 Million Cathay Pacific Shares, Expects RMB182 Million Pre-Tax Gain
Air China Limited (Stock Code: 00753) announced after market close on January 5, 2026, that its wholly-owned subsidiary Easerich Investments Inc. ("Easerich") has entered into a share placing agreement ("Placing Agreement") with Morgan Stanley & Co. International PLC (the "Placing Agent") to sell its holdings in Cathay Pacific Airways Limited.
Pursuant to the Placing Agreement, Easerich agreed to sell 108,080,000 Cathay Pacific shares at HK$12.22 per share, representing approximately 1.61% of Cathay Pacific's issued shares as of the announcement date. The share disposal is expected to be completed on the second business day after all conditions in the Placing Agreement are satisfied or waived by the Placing Agent, but in any event no later than January 8, 2026, or such other date as Easerich and the Placing Agent may agree in writing.
Based on calculations by the Company's finance department, the share disposal is expected to realize a pre-tax profit of approximately RMB182 million (excluding transaction costs, other comprehensive income, and the impact of value-added tax and surcharges, and using an HKD to RMB exchange rate of 1:0.90141), with the final amount subject to the Company's audited financial statements.
As of the announcement date, the Company holds 1,930,516,334 Cathay Pacific shares through its wholly-owned subsidiary, representing approximately 28.72% of Cathay Pacific's total issued shares. Immediately following completion of the share disposal, assuming no other changes to Cathay Pacific's total issued shares, the Company will hold 1,822,436,334 Cathay Pacific shares through its wholly-owned subsidiary, representing approximately 27.11% of Cathay Pacific's total issued shares.
Under the Placing Agreement, Easerich and the Company undertake that, from the date of the Placing Agreement until 180 days after the completion date (inclusive), they shall not, without the prior written consent of the Placing Agent, directly or indirectly sell, transfer, or otherwise dispose of any Cathay Pacific shares or related interests.
The share disposal does not constitute a notifiable transaction under Chapter 14 or a connected transaction under Chapter 14A of the Hong Kong Stock Exchange's Listing Rules, nor will it have a significant impact on the Company's future financial position and operating results. Following completion, the Company's shareholding in Cathay Pacific will continue to be maintained at a reasonable level. The Company remains an important strategic shareholder of Cathay Pacific, continues to be optimistic about Cathay Pacific's development prospects, and its support for Cathay Pacific remains unchanged.
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