Cathay Pacific to Buy Back Qatar Airways’ 9.6% Stake

Cathay Pacific (CX, Hong Kong International) has agreed to repurchase the 9.57% stake held by Qatar Airways (QR, Doha Hamad International) for HKD 6.97 billion (USD 896 million). The off-market deal is pending approval from Cathay Pacific’s independent shareholders.

Under the agreement, Qatar Airways will sell 643,076,181 shares back to Cathay Pacific at HKD 10.8374 (USD 1.39) per share. Once completed, Swire Group’s ownership will rise from 43.12% to 47.69%, while Air China’s stake will increase from 28.74% to 31.78%.

The transaction requires approval from at least 75% of independent shareholders at an upcoming extraordinary general meeting. If conditions are not met, the Deed of Undertaking will expire on May 4, 2026. Cathay Pacific stated that the repurchase was initiated following Qatar Airways’ decision to exit its position and was structured to ensure an “orderly divestment” without market disruption. The airline plans to finance the buyback through internal funds and existing credit facilities.

Following the transaction, Cathay Pacific’s public share float will decrease to around 20.53%, below the Hong Kong Stock Exchange’s 25% minimum. However, the exchange has granted a waiver allowing the reduced float.

Qatar Airways said the divestment aligns with its strategy to “optimise investments and position the group for long-term growth,” while reaffirming its partnership with Cathay Pacific through the Oneworld alliance.

The Qatari carrier first acquired the stake in November 2017 from Kingboard Holdings, becoming Cathay Pacific’s third-largest shareholder. It continues to hold stakes in other airlines, including Airlink (South Africa), Virgin Australia, International Airlines Group (IAG), and LATAM Airlines Group.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com