1 APRIL 2019
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A share purchase agreement for the acquisition of 100% of HK Express (HKE) was announced last week by Cathay Pacific. The total consideration is said to amount to HK$4.93bn (about £500m), with $2.25bn cash and $2.68bn non-cash.
Welcoming the deal, Cathay officials said the transaction was expected to complete on or before 31 December this year, “by when HKE will become a wholly-owned subsidiary of Cathay Pacific”.
A statement by the airline added: “The transaction is expected to be good for the travelling public, good for the Hong Kong hub and good for the Cathay Group, as Cathay Pacific and HKE’s respective businesses and business models are largely complementary.”
Cathay said it intended to continue to operate HK Express as a stand-alone airline using the low-cost carrier business model, given HKE was capturing a unique market segment and together with the extensive network of the Cathay Group could multiply connection opportunities through Hong Kong.
“This represents an attractive and practical way for the Cathay Group to support the long-term development and growth of our aviation business and to enhance the competitiveness of the Hong Kong hub during a time of intense regional competition,” the statement added.
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