Qatar Airways has agreed to sell its complete 9.7% holding in Cathay Pacific Airways, marking its full withdrawal from Hong Kong’s flagship carrier after eight years of investment. The sale, valued at approximately $897 million, will be executed through a share buyback at HK$10.8374 per share—a roughly 4% discount to Cathay’s latest closing price.
Cathay announced late Wednesday that the Doha-based airline had initiated talks to sell its stake, which it acquired in 2017, making Qatar Airways Cathay’s third-largest shareholder after Swire Pacific and Air China. Despite the sizable holdings, Qatar Airways did not have board representation at Cathay, which is primarily managed by Swire Pacific.
Following the announcement, Cathay’s shares climbed 4.5% in early Thursday trading, while Air China saw its Hong Kong-listed shares rise 3%, and Swire Pacific shares gained over 1%. Cathay, a major player in Asia’s air cargo sector and based at the world’s busiest cargo airport, has benefited from robust growth in e-commerce outflows from China.
Badr Mohammed Al-Meer, CEO of Qatar Airways, explained that the decision aligns with the company’s disciplined approach to managing its investment portfolio, which follows a period of strong performance and allows Qatar Airways to reallocate capital for long-term growth. The airline continues to maintain stakes in carriers across the globe, including IAG, LATAM, and Virgin Australia, as part of its international strategy.
Cathay’s buyback price represents a 35% premium over what Qatar Airways initially paid. Funding for the buyback, according to Cathay, will come from internal reserves and existing credit facilities. Patrick Healy, Chairman of Cathay Pacific, stated that the repurchase demonstrates confidence in the airline’s outlook. Cathay has announced a HK$100 billion, seven-year investment program targeting fleet renewal and upgraded passenger amenities.
Following the repurchase—pending shareholder approval—Swire Pacific’s interest in Cathay will grow from 43.12% to 47.69%, while Air China’s stake will rise from 28.74% to 31.78%.
