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.

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