From Forbes...although understand it is a straight loan via pref shares not common shares. Current common shareholders to be diluted in the ratio of 7/11.
Hong Kong Bailout For Cathay Pacific Avoids Air China Takeover
The Hong Kong government’s HK$29 billion (US$3.8 billion) bailout of Cathay Pacific gives needed cash without major shareholder Air China taking over the airline in a move neither carrier or government seems prepared for in the current sensitive political and financial environment.
Hong Kong had been an exception to major governments giving large loans or grants to airlines in the wake of the coronavirus crisis. Cathay was gradually being encircled by competitors, within Asia and further flung, with fresh cash to steer them through aviation’s worst downturn.
Cathay’s HK$39 billion (US$5 billion) recapitalisation is mostly in the form of new equity and is led by the Hong Kong government. Its future ownership structure will not significantly change as the Hong Kong government gains a 6.1% stake.