[ET Net News Agency, 11 June 2018] Swire Pacific (00019) said it proposes to take Hong
Kong Aircraft Engineering Company (HAECO) (00044) private by way of a scheme of
arrangement at a cancellation price of HK$72 per scheme share.
The cancellation price represents a premium of about 63.6% over the closing price of
HK$44 per HAECO share. The amount of cash payable to the scheme shareholders under the
proposal would be about HK$2,995 million.
HAECO will make an application for the listing of its shares to be withdrawn from the
Stock Exchange upon the scheme becoming effective.
Due to the low liquidity and the relative underperformance in the trading of HAECO
shares, Swire Pacific views the listing of HAECO shares as no longer offering a viable
source of funding for HAECO's business. Additionally, the listing of HAECO results in
administrative, compliance and other listing-related costs and expenses. If the proposal
is successful, these costs and expenses may be eliminated, and the funds saved could be
used for business operations. (HL)