Cathay Pacific (00293.HK) announced that it proposes to repurchase 643 million shares held by Qatar Airways, representing approximately 9.57% of the issued share capital, at a repurchase price of HKD 10.8374 per share, which is a 3.9% discount to today’s closing price (August 5). The total cash consideration amounts to HKD 6.969 billion, which will be funded through internal resources and existing credit facilities.
Upon completion, Swire Group's (00019.HK)(00087.HK) stake in the company will increase from 43.12% to 47.69%; Air China's (00753.HK) stake will rise from 28.74% to 31.78%. Qatar Airways will no longer hold any shares in the company.