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Cathay Pacific to Buy Back Qatar Airways’ 9.57% Stake for HK$6.97 Billion

The buyback requires approval by independent shareholders.

Overview

  • Cathay will repurchase 643.07 million shares held by Qatar Airways, representing 9.57% of its issued stock.
  • The price is HK$10.8374 per share for a total consideration of HK$6.97 billion, or about US$897 million.
  • The offer is 3.9% below Wednesday’s closing price and roughly 20.6% beneath Qatar’s 2017 entry price of HK$13.65.
  • Cathay says it will fund the purchase using internal resources and existing credit lines while retaining sufficient cash for operations.
  • Cathay said Qatar approached it to sell the entire holding, and the Gulf carrier has not commented publicly.