Cathay Pacific to Reclaim HK Govt. Stake

3 months ago Editor

Cathay Pacific Airways will buy back the remaining 50% of preference shares from the Hong Kong SAR Government on July 31, paying HK$9.75 billion and settling all unpaid dividends.

Cathay Pacific Airways plans to buy back the remaining 50% of preference shares from the Hong Kong SAR Government by July 31. This move aims to enhance shareholder value and strengthen the airline’s financial position significantly.

The airline will settle all outstanding preference share dividends up to July 31, totaling HK$2.44 billion since their issuance in Cathay Pacific’s 2020 recapitalisation. This step is crucial for maintaining stability during the global pandemic.

The buyback of HK$9.75 billion ($1.25 billion) in preference shares underscores Cathay Pacific’s proactive capital management strategy. It is aimed at improving its balance sheet and long-term financial health.

This strategic action is expected to increase financial flexibility, supporting future investments and growth. It marks a pivotal moment in Cathay Pacific’s recovery and strategy for sustainable growth and stability in the aviation industry.

Cathay Pacific’s decision shows its commitment to maximizing shareholder value and ensuring strong financial performance amid market changes. It reflects proactive management in navigating challenges and seizing opportunities.