Zhi Tong Cai Jing·2025-11-05 15:14Core Viewpoint - Cathay Pacific Airways (00293) has announced a commitment agreement with Qatar Airways, which includes a buyback of 643 million shares, representing approximately 9.57% of the issued shares, at a price of HKD 10.8374 per share, reflecting a discount of about 3.9% from the last trading price of HKD 11.28 [1] Summary by Relevant Sections Share Buyback Details - Qatar Airways has irrevocably committed to a buyback agreement with Cathay Pacific, involving the repurchase of 643 million shares at a price of HKD 10.8374 per share [1] - The total cost of the share buyback is HKD 6.969 billion [1] Public Shareholding Impact - Following the completion of the buyback, the public shareholding will decrease to approximately 20.53%, below the minimum requirement of 25% as per Listing Rule 8.08 [1] - As of the announcement date, the public shareholding was approximately 28.14%, which had increased from about 25.04% due to the issuance of 278 million shares related to bond conversion rights [1] Rationale for the Buyback - The buyback price was determined based on the volume-weighted average price of the shares over the five trading days ending November 3, 2025, minus a 3% discount [1] - The board considered the buyback as a good opportunity to enhance earnings per share [1] - The company will maintain sufficient cash to support its operations post-buyback, taking into account future funding needs and market conditions [1] - The buyback allows Qatar Airways to exit in an orderly manner, minimizing potential market volatility from selling shares in the market [1]