Qatar Airways Buys $662 Million Stake in Cathay Pacific
Qatar Airways has become the third largest shareholder of Cathay Pacific Airways (293.HK) after acquiring a 9.6% stake in Hong Kong's flagship airline for HKD5.16 billion (USD662 million).
Qatar Airways has agreed to acquire 378.18 million Cathay Pacific shares at HKD13.65 apiece from Hong Kong-listed laminate manufacturer Kingboard Chemical (148.HK), according to a press release by the state-owned Middle Eastern carrier.
Qatar Airways Group Chief Executive, His Excellency Mr Akbar Al Baker said, "Qatar Airways is very pleased to complete its financial investment in Cathay Pacific." "Cathay Pacific is a fellow oneworld member and is one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future."
Hong Kong conglomerate Swire Pacific and Air China Air China together continue to hold 74.99% shares of the airline, Cathay Pacific said in a statement :
Commenting on the share acquisition, Cathay Pacific Chief Executive Officer, Rupert Hogg said, "Qatar Airways is one of the world's premier airlines. We already work together closely as fellow members of the oneworld alliance and we look forward to a continued constructive relationship."
Shares in Cathay Pacific dropped 1.67% on the news to HKD12.98 a share. They have gained almost 28% year-to-date.