Payment of nearly HK$4 billion to the Government for the warrants buyback and in preference share dividends
Friday, September 13, 2024 Today Cathay has completed the buyback of all of the warrants it had issued to the Hong Kong SAR (HKSAR) Government in 2020 as part of its recapitalisation. The total consideration paid for the warrants buyback was about HK$1.53 billion.
On 31st July, Cathay redeemed the remaining 50% of the preference shares that were also issued as part of its recapitalisation. A total of HK$2.44 billion was paid in preference share dividends. Together with the warrants buyback, this represents a payment of nearly HK$4 billion to the HKSAR Government.
Chief Executive Officer Ronald Lam said: “I would like to once again extend my sincere gratitude to the HKSAR Government and to all our shareholders for their invaluable support during and since the pandemic.
“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 in pursuing our vision of becoming one of the world’s greatest service brands.
“Cathay is spreading its wings as we embark on a bold new strategy, underscored by our recently announced commitment of more than HK$100 billion in investments over the next seven years. These substantial investments will further elevate the experience we provide to our customers and strengthen Hong Kong’s international aviation hub status with the opening of the Three-Runway System.”
Cathay is expanding and modernising its fleet with more than 100 new-generation narrowbody, regional widebody, long-haul widebody and large freighter aircraft in its delivery pipeline, with the right to acquire over 80 additional aircraft.
Cathay Pacific, the premium airline within the Group, is also delighting customers with new cabin products launching in each of the coming three years. This begins with the airline’s all-new Aria Suite, Premium Economy and refreshed Economy coming to its redesigned Boeing 777-300ER aircraft later this year.
On the ground, Cathay Pacific will be launching newly designed flagship lounges in Hong Kong and Beijing and, for the first time, a dedicated lounge in New York over the next three years.
Tags: Ronald Lam, Cathay Pacific
