Qatar Airways Divests Cathay Pacific Stake for $896 Million

Qatar Airways is selling its 9.57% stake in Cathay Pacific Airways for $896 million in a share buyback deal. The move, pending shareholder approval, marks the end of Qatar's eight-year investment in the Hong Kong airline. Cathay's shares rose 4.2% following the announcement.

Qatar Airways announced plans to divest its 9.57% stake in Hong Kong-based Cathay Pacific Airways for $896 million. The decision ends Qatar's eight-year involvement with Cathay, marking a strategic portfolio adjustment.

Cathay Pacific disclosed the buyback agreement in a late Wednesday stock market filing, leading to a 4.2% surge in its shares on the Hong Kong Exchange. The buyback reflects confidence in Cathay's growth, as stated by Group Chairman Patrick Healy.

Qatar Airways, although not commenting on the sale, described the move as part of a proactive strategy to optimize investments following a period of fiscal success. Cathay Pacific reported a $1.2 billion profit last year, indicating a financial turnaround since Qatar's initial investment in 2017.

(With inputs from agencies.)