Cathay Pacific buys back warrants from Hong Kong government’s 2020 bailout | World News
 "Cathay Pacific")
It also paid a total of HK$2.44 billion in preference share dividends. Image: Shutterstock
Airline Cathay Pacific has bought back all warrants issued to the Hong Kong government in 2020, another step in repaying the government for a pandemic-related recapitalisation package, the company said on Friday.
Cathay said the buyback was for HK$1.53 billion ($196.2 million).
At the end of July, the carrier carried out a buyback of the last part of HK$19.5 billion in preference shares issued to the Hong Kong government as part of the HK$39 billion rescue package in June 2020.
It also paid a total of HK$2.44 billion in preference share dividends.
“Completing the buyback of the preference shares and the warrants marks the close of a significant chapter in Cathay’s history. Now, we are firmly focused on the future,” CEO Ronald Lam said.
Cathay made heavy losses and layoffs during the COVID-19 pandemic and reported its first annual profit in four years in March, and paid its first dividend since 2019.
It reported a15% drop in interim profit in August, mainly due to lower air fares, and announced a HK$100 billion ($12.8 billion) investment over seven years in the airline.
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First Published: Sep 13 2024 | 11:54 AM IST
