Hong Kong’s Cathay Pacific to buy back HK$9.7 billion worth of preference shares from government as part of its bailout package
- Cathay will also pay any remaining unpaid preference share dividends up to July 31
The city’s flag carrier said on Friday it was set to buy back the remaining 50 per cent of preference shares, worth around HK$9.75 billion, that were issued as part of the airline’s recapitalisation in 2020.
The group will also pay any remaining unpaid preference share dividends up to July 31, which will bring the total payout to HK$2.44 billion.
It thanked the government and all shareholders for their “invaluable support both during and since the pandemic”.
At the onset of the Covid-19 pandemic in 2020, the government led a bailout of Cathay with an HK$39 billion recapitalisation package as the airline struggled to stay afloat when the global travel market collapsed.
The airline said last December that it had bought back the first half of preference shares from authorities, and planned to buy the remainder by the end of July this year.