Cathay Pacific Announces plans of Buyback of Shares from HK Government

Hong Kong's Cathay Pacific Airways has announced plans to repurchase the remaining 50 percent of preference shares issued to the Hong Kong SAR Government. This transaction, scheduled for July 31, is part of the airline's strategy to reclaim full ownership of these shares.

Cathay Pacific will pay all remaining unpaid preference share dividends up to July 31, bringing the total dividends paid to the Hong Kong SAR Government during its holding period to HK$2.44 billion. These preference shares were initially issued to the government as part of Cathay Pacific's recapitalisation financing in 2020, aimed at stabilizing the airline during the financial strain caused by the COVID-19 pandemic. The total value of the stake being repurchased by Cathay Pacific is HK$9.75 billion (approximately $1.25 billion).

Cathay Pacific, the flag carrier of Hong Kong, operates out of its main hub at Hong Kong International Airport. The airline, along with its subsidiaries, offers scheduled passenger and cargo services to over 190 destinations in more than 60 countries worldwide, facilitated through codeshares and joint ventures. The firm was established on September 24, 1946, by Australian Sydney H. de Kantzow and American Roy C. Farrell. The airline marked its 70th anniversary in 2016. As of March 2024, its primary shareholders were Swire Pacific (45%), Air China (30%), and Qatar Airways (9.9%).