After issuing the Hong Kong Special Administrative Region (HKSAR) Government preference shares worth HK$19.5 billion as part of its recapitalization financing in 2020, the Cathay Group has just repurchased half of those shares, or HK$9.75 billion, marking another important step in its rebuilding process.
With the help of current market circumstances and its current commercial activities, the Cathay Group plans to repurchase the remaining 50% by the end of July 2024.
Cathay Group will repurchase preference shares worth HK$9.75 billion and pay dividends on the remaining preference shares when they come due. Concerning preferred shares, the Cathay Group has paid HK$1.97 billion to the HKSAR Government thus far.
“We are extremely grateful to both the HKSAR Government and our shareholders for the continued support they have provided during and since the pandemic,” said Cathay Group Chief Executive Officer Ronald Lam.
The Government’s investment was essential in supporting the Cathay Group and upholding Hong Kong’s status as an international aviation hub through the COVID-19 crisis.
“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,” Lam added. 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”.