Cathay Pacific has fully repurchased the HK$19.5 billion in preference shares from the Hong Kong Government.
As part of its capital restructuring during the pandemic, it has repurchased the remaining 50% of the preference shares, equivalent to HK$9.75 billion. The first 50% was repurchased in December 2023. Additionally, a total of HK$2.44 billion was paid in dividends.
CEO Ronald Lam stated, “Today marks an important milestone for Cathay Pacific, as we fully repay the invaluable support we received from the Hong Kong Government during our capital augmentation. Our efforts to rebuild Cathay Pacific for Hong Kong are progressing well, allowing us to completely redeem the preference shares just 18 months after Hong Kong’s reopening. Throughout and following the pandemic, we are deeply grateful for the support and guidance shown by the Hong Kong Government, its two board observers, and all our shareholders.”
In 2020, Cathay Pacific announced a capital restructure worth a total of HK$39 billion. This included the issuance of HK$11.7 billion in rights to existing shareholders and an HK$7.8 billion bridging loan facility from the Hong Kong Government, which was not utilized and expired in June 2023.
