Hong Kong Aircraft Engineering Co., a unit of Swire Pacific Ltd., jumped the most on record after the parent said it plans to pay a 64 percent premium for shares it doesn’t own, giving small investors an opportunity to exit after trading languished at minuscule volumes.
This isn’t the first time Swire has proposed a buyout of Haeco. Back in 2010, its offer of HK$105 a share failed to get enough support from shareholders, prompting the conglomerate to scrap the bid.
Based at the Hong Kong International Airport, Haeco, as the company is called, provides support to more than 100 airline customers and handles over 110,000 flight movements each year, according to its website. The Haeco group comprises 17 subsidiaries and joint ventures around the world.
The parent of the city’s flag carrier Cathay Pacific Airways Ltd. said it will fund the deal with its existing cash resources. It could also explore debt financing if terms are favorable, it said.
The transaction will become effective once holders representing 75 percent of the voting rights of shares not already owned by Swire approve the proposal by Feb. 28, 2019, according to the filing.