Cathay Pacific has announced a significant strategic move to repurchase the entire 9.57% stake previously held by Qatar Airways. The HKD6.97 billion transaction involves Qatar Airways selling its shares back to Cathay Pacific at HKD10.8374 per share, subject to approval by the airline’s independent shareholders. Once completed, this buyback will increase Swire Group’s ownership from 43.12% to 47.69%, and Air China’s holdings from 28.74% to 31.78%, thereby restructuring the company's ownership profile.
The buyback is expected to reduce the airline’s free float below the Hong Kong Stock Exchange minimum requirement, but a waiver has been granted to facilitate the transaction. Qatar Airways' divestment aligns with its broader investment strategy, as it continues to hold stakes in other carriers like Airlink, Virgin Australia, IAG, and LATAM Airlines Group. Qatar first acquired its position in November 2017, making it Cathay Pacific's third-largest shareholder.
Once finalized, the move will impact Cathay Pacific's operational leadership, which includes a fleet of approximately 194 aircraft serving around 93 destinations from Hong Kong International Airport. The airline aims to consolidate its ownership structure amidst a competitive environment in global aviation, positioning itself for sustainable growth and strategic clarity.
