Hong Kong 06 November 2017 (Media Reports)
Qatar Airways Q.C.S.C. (“Qatar Airways”) has announced this morning local Qatar time of signing an agreement to purchase shares of Cathay Pacific Airways Limited (Cathay Pacific) of 378,188,000 shares, being (approx) 9.61 per cent of the total issued share capital.
Completion of the transaction is expected to take place later today in Hong Kong.
Akbar Al Baker, Qatar Airways Group Chief Executive, said, ‘Qatar Airways is very pleased to complete its financial investment in Cathay Pacific. Cathay Pacific is a fellow oneworld member and is one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future.’
Qatar Airways has it’s investments of 20% in International Airlines Group, 10% investment in LATAM Airlines Group and 49% investment in Meridiana.”
Hong Kong’s Kingboard Chemical on Monday announced that it agreed to sell its entire 9.6 percent stake in Cathay Pacific to Qatar Airways for HK$5.16 billion ($661 million)
‘Kingboard’, an investment holding company, said it would recognize a gain of HK$800 million on the sale.
Cathay shares have risen by 29.4 percent since the start of January despite the airline in August posting its worst first-half loss in 20 years.
The Hong Kong airline has a highly concentrated share register with Swire Pacific owning 45 percent and Air China holding 30 percent.
The Qatari carrier in August dropped plans to build a stake of up to 4.75 percent in American Airlines Group.