Hong Kong’s Cathay buys back remaining HK$9.7 billion of government’s preference shares

Company says it also settled any outstanding preference share dividends up to Wednesday, bringing total to HK$2.44 billion

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Cathay Pacific struggled financially when the global travel market collapsed during the pandemic. Photo: May Tse

Published: 6:20pm, 31 Jul 2024Updated: 6:58pm, 31 Jul 2024

Hong Kong flag carrier Cathay Pacific Airways has bought back the remaining 50 per cent of preference shares, worth about HK$9.75 billion (US$1.2 billion), issued to the government as part of a bailout package during the pandemic.

The company said it had also paid any outstanding preference share dividends up to Wednesday, bringing the total payout to HK$2.44 billion.

The shares were part of a government-led bailout in 2020 with a HK$39 billion recapitalisation package for Cathay, as the airline struggled financially amid a collapse of the global travel market. The first half was bought back in December last year.

Cathay Group CEO Ronald Lam Siu-por thanked the government and its two observers for their support and guidance over the period.

“Today marks an important milestone for Cathay as we fully repay the invaluable support that the Hong Kong government provided to us during our recapitalisation,” he said.

“Our journey to rebuild Cathay for Hong Kong has been progressing well and this has enabled us to fully redeem the preference shares only 18 months after Hong Kong reopened.”

Ronald Lam thanked the government for its support. Photo: Dickson Lee

Hong Kong’s Cathay buys back remaining HK$9.7 billion of government’s preference shares

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}Company says it also settled any outstanding preference share dividends up to Wednesday, bringing total to HK$2.44 billion

Company says it also settled any outstanding preference share dividends up to Wednesday, bringing total to HK$2.44 billion