Cathay Pacific buys back warrants from Hong Kong government's 2020 bailout
A Cathay Pacific Airbus A350 aircraft is seen in Hong Kong International Airport, in Hong Kong, China September 3, 2024. REUTERS/Tyrone Siu/File Photo
SEOUL :Airline Cathay Pacific has bought back all warrants issued to the Hong Kong government in 2020, another step in repaying the government for a pandemic-related recapitalisation package, the company said on Friday.
Cathay said the buyback was for HK$1.53 billion ($196.2 million).
At the end of July, the carrier carried out a buyback of the last part of HK$19.5 billion in preference shares issued to the Hong Kong government as part of the HK$39 billion rescue package in June 2020.
It also paid a total of HK$2.44 billion in preference share dividends.
"Completing the buyback 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," CEO Ronald Lam said.
Cathay made heavy losses and layoffs during the COVID-19 pandemic and reported its first annual profit in four years in March, and paid its first dividend since 2019.
It reported a 15 per cent drop in interim profit in August, mainly due to lower air fares, and announced a HK$100 billion ($12.8 billion) investment over seven years in the airline.
($1 = 7.7973 Hong Kong dollars)
(Writing by Lisa Barrington; Editing by Jacqueline Wong and Stephen Coates)
