Hong Kong's Cathay Pacific Airways is to buy a 9.9 percent stake in mainland flag carrier Air China as the newly restructured Chinese giant prepares for a listing in Hong Kong.
A memorandum of understanding covering Cathay's strategic investment in Air China also provides for co-operation between the two companies on aviation and related businesses in Hong Kong and China.
The airlines did not put a value on the stake purchase announced late Wednesday but the Financial Times reported on its website that the stake will be purchased for about 200 million US dollars.