Cathay Pacific Airways has confirmed that Qatar Airways has signed an “undertaking in favour of Cathay to execute a buy-back agreement pursuant to which Cathay will buy back all of Qatar Airways’ shareholding in Cathay.”
The Hong Kong based carrier Cathay confirms that Qatar Airways’ shareholding in its company “represents approximately 9.57% of the total issued shares of Cathay. The total consideration for the buy-back is HK$6,969,273,804 ($896,248,611.19 USD).”
According to Cathay, execution of the buy-back agreement is subject to certain conditions, including Cathay obtaining approval from its independent shareholders at an Extraordinary General Meeting (EGM).
Cathay Pacific Group Chair, Patrick Healy said: “The buy-back reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub. Together with our investment of well over HK$100 billion ($12,860,000,000.00 USD) into our fleet, cabin and lounge products, and digital leadership, we are firmly focused on sustainably growing our business to strengthen Hong Kong’s status as a world-class aviation hub and contribute to the prosperity of the wider Greater Bay Area. I would like to extend my gratitude to Qatar Airways for their unwavering support over the years, and I look forward to continuing our close partnership through the oneworld Alliance relationship.”
Qatar Airways Group Chief Executive Officer, Engr. Badr Mohammed Al-Meer said: “This agreement reflects Qatar Airways Group’s disciplined approach to portfolio management and our commitment to delivering sustainable value for our shareholders. Following a period of record profitability and strong performance, this decision is part of a proactive strategy to optimise our investments and position the group for long-term growth. While we adjust our shareholding, we look forward to continuing our collaboration with Cathay through the oneworld Alliance to continue delivering benefits that enhance connectivity and choice for our passengers.”