Cathay completes buyback of HKSAR gov't warrants for $1.53b

The airline paid another $2.44b in preference share dividends.

Cathay completed the buyback of all warrants issued to the Hong Kong SAR (HKSAR) government in 2020 as part of its recapitalisation, with a total payment of about $1.53b.

In addition, Cathay paid $2.44b in preference share dividends after redeeming the remaining 50% of the preference shares issued as part of its recapitalisation on 31 July.

Combined with the warrants buyback, this totals nearly $4b in payments to the HKSAR government.

‘Completing the buyback of the preference shares and the warrants marks the close of a significant chapter in Cathay’s history. Now, we are firmly focused on the future in pursuing our vision of becoming one of the world’s greatest service brands,” Ronald Lam, CEO of Cathay said.

Cathay is expanding its fleet with more than 100 new-generation narrowbody, regional widebody, long-haul widebody, and large freighter aircraft in its delivery pipeline, with the right to acquire over 80 additional aircraft.