Cathay Pacific Redeems 50% of Hong Kong Government’s Preference Shares, Aims to Complete Buyback by July 2024
Cathay has bought back 50% of the Hong Kong SAR Government’s preference shares and plans to buy the remainder by the end of July 2024
(IN SHORT) Cathay Pacific Group has achieved a significant milestone in its recovery plan by repurchasing 50% of the HK$19.5 billion preference shares issued to the Hong Kong Special Administrative Region (HKSAR) Government in 2020 as part of the company’s recapitalization efforts during the pandemic. The airline plans to repurchase the remaining 50% by July 2024, contingent on market conditions and business performance. Despite this, Cathay will continue to pay dividends on the outstanding preference shares, and the total dividends paid to the HKSAR Government thus far amount to HK$1.97 billion. Cathay Group CEO Ronald Lam expressed gratitude for the support received from the government and shareholders and emphasized the company’s commitment to rebuilding and reestablishing itself as a premier global service brand and a source of pride for Hong Kong.
(PRESS RELEASE) Hong Kong, China, 2023-Dec-5— /Travel PR News/ — The Cathay Group has reached another key milestone in its rebuild journey today and bought back 50% – HK$9.75 billion – of the HK$19.5 billion preference shares that were issued to the Hong Kong Special Administrative Region (HKSAR) Government as part of the Cathay Group’s recapitalisation financing in 2020.
The Cathay Group also intends to buy back the remaining 50% by the end of July 2024, subject to market conditions and its business operations at the relevant time.
In addition to buying back HK$9.75 billion of the preference shares, the Cathay Group will continue to pay dividends on the remaining preference shares as they fall due. To date, the Cathay Group has disbursed HK$1.97 billion in preference share dividends to the HKSAR Government.
Cathay Group Chief Executive Officer Ronald Lam said: “We are extremely grateful to both the HKSAR Government and to our shareholders for the continued support they have provided both during and since the pandemic. The investment by the Government was essential in supporting the Cathay Group and upholding Hong Kong’s status as an international aviation hub through the COVID-19 crisis.
“That we have been able to redeem half of the preference shares is testament to the hard work of our people and the encouraging progress we have made in our journey to rebuild. We will continue to commit ourselves toward our vision to become one of the world’s greatest service brands and the pride of Hong Kong once again”.
Media Contact:
Tel: 2747 3333
press@cathaypacific.com
Source: Cathay Pacific
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