Hong Kong’s Cathay Pacific to buy back HK$1.53 billion in warrants issued to government
Warrants were part of financial rescue package government extended to keep airline afloat during pandemic
The company’s announcement on Friday night comes a month after it bought back the remaining 50 per cent of preference shares, valued at HK$9.75 billion, it had issued as part of the same rescue package. The transaction for the warrants was expected to be concluded on the 10th business day after the date of the agreement.
“Our strong financial results for the first half of 2024 give us the confidence to buy back the warrants,” Cathay Group CEO Ronald Lam Siu-por said.
“As we close this chapter in our history, I would like to extend my sincere gratitude to the Hong Kong government and to all our shareholders for their invaluable support.”
He said Cathay’s recapitalisation in 2020 was essential to ensuring it sustained its operations amid an industry downturn caused by the global pandemic.
The warrants were part of a government-led HK$39 billion recapitalisation package for Cathay, as the airline struggled financially amid the collapse of the global travel market.
Under the newly announced agreement, Cathay said it would buy back at least HK$1,531,828,439 in warrants, subject to the share price movement in a certain period between the signing of the agreement and its completion.