Air Hong Kong (AHK) and DHL have entered into a sale and leaseback transaction for eight Airbus A300-600F freighter aircraft and associated equipment.
AHK is selling the aircraft to DHL for HK$2.2bn (subject to adjustment), which will be leased back by DHL to AHK.
The sale and leaseback was first announced in July this year when Cathay Pacific announced that it was to buy the 40% stake held in freighter carrier AHK by joint venture partner DHL, the German-owned global logistics and express parcels operator.
Cathay Pacific currently owns 60% of the AHK stock.
In a Hong Kong Stock Exchange filing, Cathay Pacific and DHL confirmed that they had entered into a non-binding memorandum of Understanding that will see AHK and DHL enter into a sale and leaseback transaction for the freighter assets.