Qatar Airways has finalized the sale of its entire 9.7% stake in Cathay Pacific Airways for approximately $897 million (HK$6.97 billion), marking its complete withdrawal from Hong Kong’s flagship carrier after an eight-year investment. The transaction, announced late Wednesday, involves Cathay repurchasing the shares at HK$10.8374 per share, representing a 4% discount to its last closing price but a 35% premium over the original purchase price paid by Qatar Airways in 2017. The deal will be funded through Cathay’s internal resources and existing credit lines.
Qatar Airways initially acquired the stake in 2017, becoming Cathay’s third-largest shareholder after Swire Pacific and Air China. The Gulf carrier’s exit aligns with its disciplined portfolio strategy, aimed at optimizing investments and positioning itself for long-term growth, according to CEO Badr Mohammed Al-Meer. The move also reflects Qatar Airways’ broader strategy of divesting from certain global airline investments to focus on core operations.
For Cathay, the buyback is seen as a positive development, reducing the number of shares in circulation and potentially easing selling pressure on its stock. Cathay’s shares surged 4.8% following the announcement, with Air China and Swire Pacific also experiencing gains. The Hong Kong-based airline, one of Asia’s largest cargo carriers, has been recovering from pandemic-induced losses and recently reported a 20% increase in passenger numbers for September compared to the previous year.
Cathay Chairman Patrick Healy emphasized the buyback as a sign of strong confidence in the company’s future, which includes a HK$100 billion investment plan over seven years for fleet renewal and other upgrades. Despite the divestment, both airlines will maintain their partnership through the oneworld Alliance, ensuring continued collaboration in the global aviation sector.