Hong Kong`s Kingboard Chemical Holdings on Monday said it had agreed to sell its 9.
6 percent stake in Cathay Pacific Airways to Middle Eastern carrier Qatar Airways for HK$5.
Kingboard, an investment holding company, said it would recognise a gain of HK$800 million on the sale which represented its entire stake in the Hong Kong airline.
Cathay shares have risen by 29.
4 percent since the start of January despite the airline in August posting its worst first-half loss in 20 years.
The Hong Kong airline has a highly concentrated share register with Swire Pacific owning 45 percent and Air China holding 30 percent.
This is not the first time Qatar Airways has taken a stake in another airline.
The carrier owns 20 percent of International Consolidated Airlines Group, the parent of British Airways, as well as 10 percent of South America`s LATAM Airlines Group and 49 percent of Italy`s Meridiana.
Qatar Airways and Cathay are both members of the oneworld alliance, as is British Airways and LATAM.
The Qatari carrier in August dropped plans to build a stake of up to 4.
75 percent in American Airlines Group.
Those investment plans were met with suspicion by critics at a time when Qatar is embroiled in the region`s worst diplomatic crisis in years and is locked in an airspace rights dispute with three other Gulf states.
6 percent stake in Cathay Pacific Airways to Middle Eastern carrier Qatar Airways for HK$5.
Kingboard, an investment holding company, said it would recognise a gain of HK$800 million on the sale which represented its entire stake in the Hong Kong airline.
Cathay shares have risen by 29.
4 percent since the start of January despite the airline in August posting its worst first-half loss in 20 years.
The Hong Kong airline has a highly concentrated share register with Swire Pacific owning 45 percent and Air China holding 30 percent.
This is not the first time Qatar Airways has taken a stake in another airline.
The carrier owns 20 percent of International Consolidated Airlines Group, the parent of British Airways, as well as 10 percent of South America`s LATAM Airlines Group and 49 percent of Italy`s Meridiana.
Qatar Airways and Cathay are both members of the oneworld alliance, as is British Airways and LATAM.
The Qatari carrier in August dropped plans to build a stake of up to 4.
75 percent in American Airlines Group.
Those investment plans were met with suspicion by critics at a time when Qatar is embroiled in the region`s worst diplomatic crisis in years and is locked in an airspace rights dispute with three other Gulf states.
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