Cathay Pacific Group has made a major stride in its recovery plan by repurchasing 50% of the HK$19.5 billion preference shares that were issued to the Hong Kong Special Administrative Region (HKSAR) Government in 2020. This was a crucial step in the company’s efforts to recapitalize during the challenging times of the pandemic. The airline intends to buy back the remaining 50% of the shares by July 2024, subject to market conditions and the performance of their business.
The repurchase of these preference shares signifies a significant achievement for Cathay Pacific Group as it demonstrates their progress in regaining financial stability. The company’s ability to repurchase such a substantial portion of the shares highlights their commitment to restoring their financial health and strengthening their position in the aviation industry.
The decision to repurchase the preference shares was driven by the airline’s determination to reduce its reliance on government support and regain control over its operations. By repurchasing these shares, Cathay Pacific Group aims to regain autonomy and flexibility in decision-making, enabling them to navigate the challenges of the post-pandemic travel landscape more effectively.
The timeline for the repurchase of the remaining 50% of the shares has been set for July 2024, taking into consideration market conditions and the performance of the company. This cautious approach ensures that Cathay Pacific Group can make informed decisions based on the prevailing economic climate, ultimately safeguarding the interests of their shareholders.
The repurchasing of these preference shares is an instrumental step in Cathay Pacific Group’s overall recovery plan. It not only strengthens the company’s financial position but also signifies their commitment to rebuilding and sustaining their business in the long term. Through these efforts, Cathay Pacific Group aims to emerge from the pandemic as a resilient and thriving airline, ready to serve the needs of travelers worldwide.
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