Cathay Pacific acquires Hong Kong Express

Lauren Eldershaw
By Lauren Eldershaw March 27, 2019 15:45

Cathay Pacific acquires Hong Kong Express

The highly-anticipated acquisition of Hong Kong Express Airways by Cathay Pacific was confirmed today for a total purchase price of $4.93bn Hong Kong dollars ($628million) to be made in cash and promissory loan notes.

When the transaction is complete, on or before December 31, 2019, HK Express will become a wholly-owned subsidiary of Cathay Pacific. The acquisition still needs to be approved by competition authorities and is also subject to consents under certain contracts of HK Express.

In a stock market filing, Cathay Pacific states that the acquisition will “generate synergies as the businesses and business models of Cathay Pacific and HKE are largely complementary” and that the deal “represents an attractive and practical way for the Cathay Pacific Group to support the long-term development and growth of its aviation business and to enhance its competitiveness”. Cathay Pacific intends to continue to operate HK Express as a standalone airline using the low-cost carrier business model.

Lauren Eldershaw
By Lauren Eldershaw March 27, 2019 15:45