Hong Kong
Cathay Group completes repayment of HK$19.5 billion investment from Hong Kong SAR Govt
Cathay Group has fully repaid the HK$19.5 billion investment from the HKSAR Government, including dividends. CEO Ronald Lam hailed this as a milestone, enabling Cathay to focus on future growth and supporting Hong Kong’s international aviation hub development.
The Cathay Group has announced the complete repayment of the HK$19.5 billion (US$2.5 billion) investment made by the Hong Kong Special Administrative Region (HKSAR) Government to support the airline during the COVID-19 pandemic.
This milestone marks a significant step in the airline’s financial recovery and its commitment to rebuilding for the future.
The repayment was finalized with the Cathay Group buying back the remaining 50% of preference shares, valued at HK$9.75 billion, issued to the HKSAR Government during the airline’s 2020 recapitalisation.
The initial 50% of these preference shares had been repurchased in December 2023.
Alongside this, Cathay has also paid the remaining preference share dividends up to 31 July 2024, bringing the total dividends paid to HK$2.44 billion.
Cathay Group Chief Executive Officer Ronald Lam expressed his gratitude for the government’s support: “Today marks an important milestone for Cathay as we fully repay the invaluable support that the HKSAR Government provided to us during our recapitalisation. Our journey to rebuild Cathay for Hong Kong has been progressing well and this has enabled us to fully redeem the preference shares only 18 months after Hong Kong reopened. We are extremely grateful for the support and guidance that the HKSAR Government, its two observers to the Board, and all of our shareholders have shown Cathay, both during and since the pandemic.”
Lam further emphasized the airline’s future focus: “As we turn the page on this significant chapter in Cathay’s history, our focus now is firmly on the future. We continue to make substantial investments to grow Cathay for the long term, and deliver on our ongoing commitment to being a positive driving force supporting Hong Kong’s international aviation hub development.”
The Cathay Group’s 2020 recapitalisation package, amounting to HK$39 billion, was structured in three tranches:
- Issuance of HK$19.5 billion preference shares with warrants to the HKSAR Government.
- An HK$11.7 billion rights issue of ordinary shares to existing shareholders.
- A HK$7.8 billion bridge loan facility provided by the HKSAR Government, which was not utilized and expired on 8 June 2023.
In addition to repurchasing the preference shares and paying the associated dividends, Cathay Group also made its first dividend payment to ordinary shareholders since 2019 in May this year, totalling HK$2.8 billion.
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How about the ARROGANT but Incendiary, LOUD boast of SIA making record profits – loudest BOAST from 3 legged PAP Administration politicians to COMPLIMENT that of SIA MD?
This is CLASSIC act, (of Cathay) fully accountable, from a so called Communist Country whose acts of MORAL RESPONSIBILITY eliminate anything the Ownself Praise Ownself of PAP Administration of highly paid robbers of people’s money.
Democratic SG come on – what a FARCE!
This is the correct way. Monetary help from the government is returned and shares were given to the government as security for the loan . Never in the history of Singapore under the PAP ruling party has a commercial entity returned taxpayers’ monies. Kudos to the HK government in safeguarding the interest of Public monies. During Covid in Singapore, I did write that the grants to commercial entities should be given as interest free loans. The Cathay Group has done better by giving dividends to their government for shares held. In contrast our government increased the GST to 9% allowing… Read more »
I know what the purpose of your this article….implying did SIA do the same?
Tan gu gu…
Who did you moronic fuckers……voted for and WILL STILL VOTE FOR?
Now stop complaining and get the fuck back to work, if you still can get a job, that is!😆😆😆🤣🤣🤣😆😆😆
I wonder when SIA will do the same. How many billions of taxpayer dollars have been injected into the ailing airline?
Or are taxpayer monies only for SIA and Changi Airport Group executives to enjoy? Not for taxpayer benefit?
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大亞區航空
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Congrats on the full repayment, but does that mean Cathy is totally free of involvement from the government?