Cathay Pacific Not Considering Sale Of HAECO

Cathay Pacific Airways is not considering selling its stake in Hong Kong Aircraft Engineering Company (HAECO), Cathay Chairman Christopher Pratt said Wednesday.

Pratt's comment quashed market rumors that the airline may sell for cash its 27.45 percent stake in HAECO, which is mainly engaged in aircraft modification and maintenance in Hong Kong and China.

He also said Cathay had no fundraising plans in the capital markets and its balance sheet was strong.

"Cathay is not considering selling its stake in HAECO and the board of HAECO is not aware of any selling of shares," Pratt told reporters after the company's annual shareholder's meeting.

Shares in HAECO jumped 44 percent in three days to a 10 month high of HKD$103.00 on Monday before profit-taking moved in. They closed up 0.27 percent at HKD$91.60 on Wednesday.

In January Swire Pacific dropped its plan to buy 7.5 percent of HAECO from Cathay after it failed get a waiver from mandatory takeover requirements.

Swire controls nearly 61 percent of HAECO via direct investment and through subsidiary Cathay.

Cathay also said it had appointed Chang Zhenming, the vice-chairman and president of CITIC Group and chairman of CITIC Pacific, as deputy chairman and non-executive director of the company.

Peter Wong, group general manager of HSBC, was also named an independent non-executive director of the company, Cathay said.