Qatar Airways Divests Stake in Cathay Pacific

Strategic Decision to Exit Investment

Qatar Airways has sold its entire 9.7% stake in Cathay Pacific Airways for approximately US$ 897 million (around Rp 14.97 trillion). The transaction was executed through a buyback mechanism at HK$ 10.8374 per share, which is about 4% below the last closing price. This move marks the end of Qatar Airways' eight-year investment in the Hong Kong-based carrier.

Investment History and Financial Details

Qatar Airways acquired its stake in Cathay Pacific in November 2017, becoming the third-largest shareholder after Swire Pacific and Air China. The current sale price represents a 35% premium over Qatar's original acquisition cost. Cathay Pacific will finance the buyback using internal funds and existing credit facilities.

Market Reaction and Analyst Insights

The buyback has been viewed positively by the market, with Cathay Pacific's shares rising 4.8%, while Air China's Hong Kong-listed shares gained 4% and Swire Pacific rose over 1%. Analysts see the move as beneficial for Cathay's stock price as it reduces the number of outstanding shares and mitigates potential selling pressure. Kenny Ng Lai-yin from China Everbright Securities International noted that the buyback is more related to Qatar Airways' cash needs rather than any specific issue with Cathay Pacific.