Cathay Pacific buys back warrants from Hong Kong government's 2020 bailout

SEOUL (Reuters) -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 a 15% 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.

($1 = 7.7973 Hong Kong dollars)

Source: Investing.com