Article from BTNews 13 NOVEMBER 2017
Qatar takes 9pc of Cathay
Asia’s largest international airline, Cathay Pacific, acquired a new part-owner last week after Qatar Airways agreed to buy a 9.6% stake in the company to become the third biggest shareholder after Swire Pacific and Air China. Qatar bought 378.18m shares of Cathay Pacific Airways at HK$13.65 (£1.33) per share in a transaction valued at HK$5.16bn (£500m) from Hong Kong industrial company Kingboard Chemical, according to a stock exchange filing.
Kingboard founder Paul Cheung Kwok-wing bought his stake in Cathay Pacific earlier this year. The sale of the shares gives his company a profit of about HK$800m (£78m).
Swire Pacific remains the largest shareholder in Cathay, which like Qatar Airways is a member of the Oneworld alliance, with a 45% stake, with Air China controlling 29.99%. The remaining shares not owned by Qatar Airways are publicly traded.
Qatar’s move comes after its attempt earlier this year to buy shares in American Airlines was turned down by the US carrier. Group CEO Akbar Al Baker said his new partner was “one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future.”
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