Hong Kong’s Cathay Pacific to buy back HK$9.7 billion worth of preference shares from government as part of its bailout package
Hong Kong’s Cathay Pacific Airways will buy back the remaining half of preference shares issued to the government as part of a bailout package during the pandemic and pay any dividends up to the end of the month.
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.
The government said it welcomed the buy-back and would step up discussions with local airlines to add more new routes to the Middle East and belt and road countries.
The Belt and Road Initiative is China’s plan to grow global trade.
