Qatar Airways set to sell entire Cathay Pacific stake
Qatar Airways will sell its entire stake in Hong Kong-based Cathay Pacific Airways through a share buyback valued at $896 million, the companies announced, ending the Qatari carrier’s eight-year investment in the airline.
The deal was disclosed late Wednesday in a stock exchange filing by Cathay Pacific, whose shares rose 4.2% on the Hong Kong Stock Exchange following the announcement, News.Az reports, citing AP.
Under the agreement, Qatar Airways will divest its 9.57% holding in the airline. The transaction remains subject to shareholder approval.
Cathay Pacific’s other major shareholders are Swire Pacific and Air China.
“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,” said Cathay Group chairman Patrick Healy in a statement.
While Qatar Airways did not issue its own statement, Cathay Pacific’s release included comments from Qatar Airways CEO Badr Mohammed al-Meer, who said the decision aligns with the company’s “disciplined approach to portfolio management and our commitment to delivering sustainable value for shareholders.”
“Following a period of record profitability and strong performance, this decision is part of a proactive strategy to optimize our investments and position the group for long-term growth,” al-Meer added.
Qatar Airways first acquired its stake in Cathay Pacific in 2017 for about $662 million, at a time when the Hong Kong carrier was struggling with financial losses and restructuring efforts. Cathay Pacific has since rebounded, posting a $1.2 billion profit in the last fiscal year.
Qatar Airways, one of the Gulf’s leading long-haul carriers alongside Emirates and Etihad Airways, has also returned to strong profitability, reporting a $2.15 billion profit in its last fiscal year after recovering from both the Arab nations’ boycott and the COVID-19 pandemic.
The Doha-based airline continues to hold stakes in several major carriers, including International Airlines Group, LATAM Airlines Group, China Southern Airlines, Virgin Australia, and South Africa’s Airlink.
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