QATAR AIRWAYS SELLS CATHAY PACIFIC STAKE FOR $897 MILLION – It marks its complete exit from Hong Kong’s flagship airline after eight years
State-owned Qatar Airways has decided to sell its entire stake in Cathay Pacific Airways for about $897 million, marking its complete exit from Hong Kong’s flagship airline after eight years.
Cathay said that the Doha-based carrier had approached it about selling its entire 9.7% stake, and it would repurchase the shareholding through a buyback at HK$10.8374 per share, roughly a 4% discount to its last closing share price.
The Gulf carrier had bought the stake in November 2017, making it the third-largest shareholder in Cathay after Swire Pacific and Air China.
Cathay is paying roughly a 35% premium over the price Qatar Airways originally paid for the stake to buy it back.
The Hong Kong carrier said it would fund the deal through internal resources and existing credit lines. Cathay and Qatar Airways said they would continue their partnership through the oneworld Alliance.
