, Hong Kong
177 views
Shutterstock photo

Cathay Pacific to buy back remaining 50% of gov't preference shares

The airline's repurchase of the stake is valued at $9.75b.

The Cathay Group has announced its intention to buy back the final 50% of preference shares from the government by 31 July, totalling $9.75b.

This follows the government's investment in June 2020, which amounted to $27.3b through the Land Fund. The investment comprised $19.5b in preference shares with detachable warrants and a $7.8b bridging loan.

The government appointed Carlson Tong, a certified public accountant, and Rimsky Yuen, a senior counsel, as observers on Cathay Group's Board of Directors. 

It also emphasised the crucial role of Hong Kong-based air service providers in maintaining the city's status as an international aviation hub. 

Additionally, the government highlighted that its investment was pivotal during a critical period, contributing to Cathay Pacific's improved operational and financial performance as travel resumed to pre-pandemic levels.

Looking ahead, the Government anticipates Cathay Pacific to swiftly restore its full operational capacity, expand its passenger and cargo flight networks, and elevate service standards.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!