Qatar Airways Sells Entire Stake in Cathay Pacific Airways
Qatar Airways, the global aviation giant, has decided to sell its entire stake in Cathay Pacific Airways, approximately 9.87% of the company's capital, for around $897 million. This move marks the airline's complete exit from the Hong Kong-based carrier after an eight-year investment. The transaction will be carried out through a share buyback that requires approval from at least 75% of shareholders.
This decision reflects confidence in the prospects of the Hong Kong-listed company, which plans to launch a significant investment plan to remain competitive in one of the world's most dynamic markets. Qatar Airways had acquired this stake in November 2017 from Kingboard Chemical Holdings of Hong Kong, becoming the third-largest shareholder of Cathay Pacific after Swire Pacific and Air China. The acquisition was the company's first major purchase in the South Asia region.
The sale terms allow Qatar Airways to generate a 35% premium on the initial purchase price, resulting in a significant gain of $235 million. The divestment is part of an ongoing process to optimize investments and position the company for long-term growth. Qatar Airways still holds strategic stakes in IAG (the parent company of British Airways), the South American carrier LATAM, Virgin Australia, China Southern Airlines, Iberia, AerLingus, and other low-cost airlines.
The company's new strategy focuses on investing in smaller airlines with high potential, such as South Africa's SA AirlinkPty and Rwanda's RwandAir. This shift in strategy may be seen as an opportunity lost for Cathay Pacific, but it highlights Qatar Airways' commitment to adapting to the evolving aviation landscape.
