Cathay Pacific Airways Limited and Qatar Airways QCSC announced on 5th November that Qatar Airways has entered into an undertaking to execute a buy-back agreement with Cathay Pacific.
These proceedings are in accordance with Cathay’s pending repurchase of the entire Qatar Airways’ shareholding in its organisation.
According to Cathay group chair Patrick Healy: “The buy-back 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. Together with our investment of well over HK$100 billion into our fleet, cabin and lounge products, and digital leadership, we are firmly focused on sustainably growing our business to strengthen Hong Kong’s status as a world-class aviation hub and contribute to the prosperity of the wider Greater Bay Area. I would like to extend my gratitude to Qatar Airways for their unwavering support over the years, and I look forward to continuing our close partnership through the oneworld Alliance relationship. I would also like to thank our shareholders, Swire Pacific and Air China, for their continued trust and support.”
Qatar Airways group CEO Badr Mohammed Al-Meer likewise remarked: “This agreement reflects Qatar Airways Group’s disciplined approach to portfolio management and our commitment to delivering sustainable value for our shareholders. Following a period of record profitability and strong performance, this decision is part of a proactive strategy to optimise our investments and position the group for long-term growth. While we adjust our shareholding, we look forward to continuing our collaboration with Cathay through the oneworld Alliance to continue delivering benefits that enhance connectivity and choice for our passengers. Hong Kong remains an important market to Qatar Airways, and we remain fully committed to serving it through our flights and codeshare agreements, offering travellers a seamless and world-class experience that reflects the highest standards of quality, service and innovation.”
What happens now?
Qatar Airways’ shareholding in Cathay represents approximately 9.57 percent of the total issued shares of Cathay.
The total consideration for the buy-back is worth HK$6,969,273,804.
Execution of the buy-back agreement by Cathay is subject to certain conditions, including Cathay obtaining approval from its independent shareholders at an Extraordinary General Meeting (EGM).
