Hong Kong’s Cathay Pacific completes HK$1.53 billion buy-back in warrants from government
Warrants were part of government-led HK$39 billion financial package to keep airline afloat during pandemic
The warrants were part of a government-led HK$39 billion recapitalisation package for Cathay Pacific back in 2020, as the airline struggled financially amid the collapse of the global travel market during the Covid-19 pandemic.
The company’s announcement on Friday followed its move in July to buy back the remaining 50 per cent of preference shares, valued at HK$9.75 billion, which were also issued as part of the same rescue package.
“I would like to once again extend my sincere gratitude to the government and to all our shareholders for their invaluable support during and since the pandemic,” said Ronald Lam Siu-por, the carrier’s CEO.
“Completing the buy-back of the preference shares and the warrants marks the close of a significant chapter in Cathay’s history. Now, we are firmly focused on the future in pursuing our vision of becoming one of the world’s greatest service brands.”
The HK$1.53 billion warrant buy-back and the additional HK$2.44 billion in preference share dividends Cathay paid out in July to the government were equal to the HK$4 billion that Financial Secretary Paul Chan Mo-po earlier said had been gained from investing in the airline.
