Qatar Airways to sell all of its Cathay Pacific stake
- Qatar Airways' shareholding in Cathay represents about 9.6 percent of the total issued shares of the Hong Kong carrier
HONG KONG: Cathay Pacific has said it plans to buy back all of its shares owned by Doha-headquartered Qatar Airways worth HK$6.96 billion (US$896 million), ending the two carriers’ eight-year shareholding relationship.
The airline’s stake in Hong Kong bounced more than 4.0 percent at HK$11.7 each on Thursday, a day after the exit was announced.
“The buyback reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub,” Cathay Group Chair Patrick Healy said in a statement on Wednesday.
Qatar Airways’ shareholding in Cathay represents about 9.6 percent of the total issued shares of the Hong Kong carrier, the statement added.
Qatar Airways Group CEO Badr Mohammed Al-Meer said the agreement “reflects Qatar Airways Group’s disciplined approach to portfolio management and our commitment to delivering sustainable value for our shareholders”.
The public float of the company will be reduced to around 20.5 percent of the issued shares after the buyback, Cathay said in a filing to the Hong Kong stock exchange.
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