Cathay Pacific Airways is intending to purchase Qatar Airways’ entire shareholding in the Hong Kong-based carrier.
The provisional buy-back agreement is subject to approval by Cathay’s independent shareholders.
Qatar Airways holds a 9.57% stake in Cathay Pacific. Both operators are Oneworld alliance members.
“Following a period of record profitability and strong performance, this decision is part of a pro-active strategy to optimise our investments and position the group for long-term growth,” says Qatar Airways chief Badr Mohammed Al-Meer.
“This agreement reflects Qatar Airways Group’s disciplined approach to portfolio management and our commitment to delivering sustainable value for our shareholders.”
The Middle Eastern carrier originally took a shareholding in Cathay in late 2017, purchasing about 9.6% of the company for about HK$5.1 billion from entities of Kingboard Holdings.
At the time Qatar Airways stated that it would be a passive investor.
Cathay says the overall consideration for the buy-back is just under HK$6.97 billion ($896 million).
Group chair Patrick Healy says the planned transaction “reflects our strong confidence” in the company’s future and underlines its commitment to developing the Hong Kong hub.
Healy adds that Qatar Airways has demonstrated “unwavering support” to the airline. Shareholder approval for the transaction will be sought at an extraordinary general meeting.
