© Reuters. FILE PHOTO: The Swire Group logo is seen in Hong Kong, China, December 6, 2017. REUTERS/Tyron Siew
(Reuters) – Hong Kong-based Swire Pacific (OTC:) Ltd said on Wednesday it will sell its US unit of Swire Coca-Cola (NYSE: NYSE) for $3.9 billion to its controlling shareholder, John Swire & Sons Ltd.
Swire Pacific, which owns 45% of Hong Kong flagship carrier Cathay Pacific Airways, said it expects a combined gain of about HK$22.80 billion ($2.91 billion) from the sale.
It added that once the sale is completed, Swire Pacific will propose to pay a special dividend totaling HK$11.7 billion.
The investment firm said the deal would help Swire Pacific strengthen its valuation, shore up its balance sheet, allow it to focus on Greater China and Southeast Asia, and provide it with capital to invest in long-term investments.
($1 = 7.8323 Hong Kong dollars)
