Cathay Pacific (CX, Hong Kong International) shareholders have approved the off-market repurchase of the entire shareholding of Qatar Airways (QR, Doha Hamad International), with the deal expected to complete on February 24.

According to a February 12 stock exchange filing, the special resolution passed with 99.9% of independent votes in favour. Qatar Airways, which holds 643,096,181 shares representing a 9.6% stake, abstained from the poll as required by Hong Kong's share buyback code.

The transaction is valued at HKD6.9 billion Hong Kong dollars (USD891.8 million), pricing the stock at roughly HKD10.8 (USD1.4) per share. The airline and Qatar Airways executed the buyback deed immediately following the meeting, having secured necessary consent from the Securities and Futures Commission (SFC).

Upon completion, the total number of issued Cathay Pacific shares will reduce from 6.7 billion to 6.1 billion. This capital reduction will increase the ownership stake of Swire Pacific to approximately 47.7%. Air China (CA, Beijing Capital) will see its interest settle just below 30%. The mainland carrier divested a 1.6% stake in early January to ensure the buyback did not trigger a mandatory general offer obligation, which would have happened if its stake exceeded 30%.

Qatar Airways is exiting the investment to optimise its portfolio but will retain its partnership with the Hong Kong carrier through the Oneworld alliance