Cathay Group continues its strong rebuild momentum

A Cathay Pacific Airbus A320neo in flight.
Photo Credit: Cathay Group

The Cathay Group is continuing its strong post-pandemic restoration. In its latest move, the Group has bought back 50% of the Hong Kong SAR Government’s preference shares.

This formed part of the Cathay Group’s recapitalisation financing in 2020. The airline Group has further disclosed its plans to buy back the remainder by the end of July 2024.

Reclaiming 50% of Preference Shares


In a bold strategic move, the Cathay Group has successfully bought back 50% – a staggering HK$9.75 billion – of the HK$19.5 billion preference shares issued to the Hong Kong Special Administrative Region (HKSAR) Government.

This move represents a decisive step in the organization’s ongoing efforts to regain control and financial stability.

Timeline for Completion


Having shown strong momentum in its rebound in recent months, the Cathay Group clarly isn’t resting on its laurels in the closeout to the calendar year.

The plan is set, and by the end of July 2024, the remaining 50% of preference shares is set to be reclaimed.

Of course, this is contingent upon market conditions and the overall state of business operations at that crucial juncture.

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A Cathay Pacific aircraft is refuelled with SAF.
Photo Credit: Cathay Pacific

Dividends and Financial Responsibilities


Acknowledging the support received, the Cathay Group remains committed not only to reclaiming shares but also to meeting its financial obligations.

Alongside the buyback, the group will continue to honor its commitment by paying dividends on the remaining preference shares as they fall due.

As of now, a noteworthy HK$1.97 billion has already been disbursed in preference share dividends to the HKSAR Government.

Leadership Insight: Ronald Lam’s Vision


Cathay Group’s Chief Executive Officer, Ronald Lam, expressed profound gratitude to both the HKSAR Government and shareholders for their unwavering support during and post the pandemic.

Lam emphasized the crucial role the government’s investment played in sustaining the Cathay Group and preserving Hong Kong’s status as a global aviation hub amidst the challenges posed by the COVID-19 crisis.

Lam stated, “That we have been able to redeem half of the preference shares is testament to the hard work of our people and the encouraging progress we have made in our journey to rebuild.”

“We will continue to commit ourselves toward our vision to become one of the world’s greatest service brands and the pride of Hong Kong once again.”

A Cathay Pacific A350 climbs after takeoff.
Photo Credit: Charlie Carter/AviationSource

Cathay Group’s Ascension


The buyback and commitment to reclaiming the remaining preference shares underscore the Cathay Group’s determination to regain its position as a powerhouse in the aviation industry.

This financial maneuver not only stabilizes the organization but also sends a positive ripple effect throughout the industry, instilling confidence and trust in Cathay Group’s resurgence.

Navigating Conditions and Ensuring Success

While the plan is set, the Cathay Group remains vigilant, acknowledging the importance of market conditions and the fluidity of business operations.

This adaptive approach positions the organization to navigate challenges effectively, ensuring a successful completion of the buyback by July 2024.

Summary


Ronald Lam’s vision for the Cathay Group as one of the world’s greatest service brands echoes throughout this strategic buyback.

This pledge not only signifies financial resurgence but also a commitment to excellence, aiming to restore the pride of Hong Kong on the global stage.

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The Cathay Group has continued its path to restoration, with the buyback of 50% of the Hong Kong SAR Government’s preference shares.
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