Qatar Airways has announced plans to sell its 9.6% stake in Cathay Pacific Airways for $896 million (£708 million), ending an eight-year investment in Hong Kong’s flagship airline.
The Doha-based carrier approached Cathay about the sale of its entire shareholding, which Cathay will repurchase for $1.40 per share, subject to approval by independent shareholders, the airline said in a filing on Wednesday.
Qatar Airways became Cathay’s third-largest shareholder in 2017 when it bought the stake from Kingboard Chemical Holdings and other investors for $662 million — marking the first investment by a Middle Eastern airline in an East Asian carrier.
In a statement, Qatar Airways chief executive Badr Mohammed Al-Meer said the divestment followed “a period of record profitability and strong performance”, describing it as part of a “proactive strategy to optimise our investments and position the group for long-term growth”.
Once the buyback is completed, Cathay’s two largest shareholders — Swire Pacific and Air China — will see their holdings rise to 47.7% and 37.8%, respectively.
Cathay Pacific chairman Patrick Healy said the repurchase underscored the airline’s “confidence in the company’s future”, citing its $12.9 billion investment over seven years to expand its fleet and upgrade lounges.
Despite the sale, both airlines confirmed they will continue their cooperation through codeshare and Oneworld alliance partnerships.
Qatar Airways, the state-owned flag carrier of Qatar, has taken stakes in several global airlines over the past decade, including IAG, LATAM, and China Southern Airlines.