Cathay to Buy Control of Dragonair for $1.58 Billion – Bloomberg
Cathay Pacific Airways Ltd., Asia’s fifth-biggest carrier, will pay $1.58 billion to buy Hong Kong Dragon Airlines Ltd . and double its stake in Air China Ltd., adding 21 routes in the world’s second-largest aviation market.
Cathay will buy the 82 percent stake it doesn’t own in Dragonair for HK$8.22 billion ($1.1 billion) in cash and stock and pay HK$4.07 billion to increase its Air China stake to 20 percent, the airlines said in a statement today. Air China will pay HK$5.39 billion for 10.2 percent of Hong Kong-based Cathay.