Cathay Pacific has announced it plans to buy DHL Group’s 40% stake in Air Hong Kong.
Cathay Pacific already owns a 60% majority stake in the airline and it has announced in a Hong Kong Stock Exchange disclosure that it has entered a non-binding MOU which will have effect until December 31st of next year.
Other terms of the deal include Air Hong Kong and DHL Group entering into a sale/lease-back transaction regarding the carrier’s eight A300-600(F) aircraft.
A new block space agreement will also be negotiated under which Air Hong Kong will sell space to DHL on an agreed network of overnight Asian freight routes.
The value of the transaction has been set at around HKD36.3 million (USD4.64 million).