Qatar Airways sells entire Cathay Pacific stake for US$897 million
The Middle Eastern carrier has pursued a strategy of investing in airlines worldwide to strengthen its competitive position
[BENGALURU] State-owned Qatar Airways has decided to sell its entire stake in Cathay Pacific Airways for about US$897 million, marking its complete exit from Hong Kong’s flagship airline.
Cathay said on Wednesday (Nov 5) that it will repurchase Qatar Airways’ entire 9.57 per cent shareholding for HK$10.8374 per share, roughly a 4 per cent discount to the last closing share price.
The Gulf carrier had purchased the stake in November 2017 from Hong Kong’s Kingboard Chemical Holdings, making it the third-largest shareholder in Cathay. It was Qatar Airways’ first major investment in an Asian airline and was aimed at boosting its global influence and increasing traffic through its Doha hub.
Qatar Airways CEO Badr Mohammed Al-Meer said that the exit reflects the company’s disciplined portfolio strategy and follows a period of strong results, allowing the company to optimise investments and position itself for long-term growth.
The Middle Eastern carrier has pursued a strategy of investing in airlines worldwide to strengthen its competitive position; these investments include a stake in IAG.
Cathay’s group chair, Patrick Healy, said the stake buyback reflects “strong” confidence in the company’s future. The airline has laid out an investment plan of HK$100 billion over seven years that includes fleet renewal, cabin products and lounges.
Cathay and Qatar Airways said that they would continue their partnership through the oneworld Alliance. REUTERS
