Qatar Airways Exits Cathay Pacific with $896 Million Stake Sale
Qatar Airways is divesting its entire 9.57% stake in Cathay Pacific Airways through a share buyback deal worth $896 million. The transaction, subject to shareholder approval, ends Qatar Airways' involvement with the Hong Kong carrier that began in 2017 with a $662 million investment. Cathay Pacific's share price gained 4.2% following the announcement. Cathay Pacific's Chairman Patrick Healy views the buyback as a demonstration of confidence in the company's future and commitment to Hong Kong as an aviation hub. Qatar Airways' CEO Badr Mohammed al-Meer described the move as part of their strategy to optimize investments for long-term growth.
*this image is generated using AI for illustrative purposes only.
Qatar Airways has announced its decision to divest its entire 9.57% stake in Hong Kong-based Cathay Pacific Airways through a share buyback deal valued at $896 million. This move marks the end of Qatar Airways' involvement with the Hong Kong carrier, which began in 2017 with an initial investment of $662 million.
Deal Highlights
| Aspect | Details |
|---|---|
| Stake Sold | 9.57% |
| Transaction Value | $896 million |
| Initial Investment (2017) | $662 million |
| Cathay Pacific Share Price Movement | 4.2% gain following announcement |
Strategic Implications
The share buyback deal, which is subject to shareholder approval, reflects significant developments for both airlines:
For Cathay Pacific
Chairman Patrick Healy stated that the buyback demonstrates confidence in the company's future and underscores its commitment to developing Hong Kong as an aviation hub.
For Qatar Airways
CEO Badr Mohammed al-Meer described the divestment as part of a strategy to optimize investments for long-term growth.
Financial Context
To provide context for this transaction, it's worth noting the recent financial performances of both airlines:
- Cathay Pacific reported a profit of $1.20 billion in its last fiscal year.
- Qatar Airways posted a profit of $2.15 billion in its most recent fiscal year.
This deal comes at a time when both airlines are showing strong financial recovery, likely influencing the timing and terms of the transaction.
The divestment by Qatar Airways and the corresponding share buyback by Cathay Pacific mark a significant shift in the ownership structure of one of Asia's premier carriers. As the aviation industry continues to evolve, this move could have implications for international airline partnerships and investment strategies in the sector.
17
