Cathay Pacific (00293) announced on November 5, 2025, that Qatar Airways has entered into an irrevocable commitment deed with the company. Under the terms of the deed, Qatar Airways agreed to execute a share repurchase agreement for Cathay Pacific to buy back approximately 643 million shares held by Qatar Airways, representing about 9.57% of the issued share capital. The repurchase price is set at HKD 10.8374 per share, reflecting a 3.9% discount to the closing price of HKD 11.28 per share on the last trading day on the Hong Kong Stock Exchange.

As of the announcement date, Cathay Pacific's public float stands at approximately 28.14% of its issued shares, including the repurchase shares. Upon completion of the buyback and assuming no other changes in shareholding, the public float would decrease to about 20.53% of the issued shares (excluding treasury shares, if any), falling below the minimum 25% threshold required under Listing Rule 8.08. The company has applied for and received a waiver from the Hong Kong Stock Exchange regarding the public float requirement, subject to disclosure of the waiver details and rationale.

Subsequently, until the announcement date, Cathay Pacific issued 278 million shares due to the exercise of conversion rights attached to bonds, increasing its public float from approximately 25.04% on the waiver date to about 28.14% as of the announcement date.

In determining the terms of the repurchase, the board considered the following factors: The repurchase price was based on a 3% discount to the 5-day volume-weighted average price up to and including November 3, 2025. The board views this as an opportune moment to enhance earnings per share. The total consideration for the buyback amounts to HKD 6.969 billion.

After evaluating the group's resources, total repurchase cost, future funding needs, market conditions, operational requirements, and the broader aviation industry landscape, the board concluded that the group would maintain sufficient liquidity to support operations post-repurchase. Additionally, the buyback allows Qatar Airways to exit its stake in an orderly manner, minimizing potential market volatility from a large-scale share sale.