Cathay to buy back 10% of company stock

[naughty johnny]

Could anyone confirm or deny this rumour circulating the banking community at the moment, that CX is preparing to buy back 10% of stock - dare I say it - with cash generated from SLS???? :eek::eek::eek:

[hongkongpilot]

Impossible !!!!

[sirhcttarp]

Did this rumor start on pprune?

[SMOC]

Here it is,


HONG KONG - In April 2009, the board of Cathay Pacific Airways Ltd (Cathay), a provider of air transportation services, authorized the repurchase of up to 393.363 mil ordinary shares, or about 10% of the Company's entire share capital, in an open market transaction. Based on Cathay's closing stock price of HKD 8.15 (USD 1.052) on 02 April 2009, the last full trading day prior to the announcement of the board?s approval, the buyback had an indicated value of up to HKD 3.206 bil (USD 413.726 mil) in cash.

[Arcla]

What exactly does that mean? They don't have enough money so ask staff to take unpaid leave BUT they have enough money to buy back shares at a low price...?:sad:

[HardRock]

That makes my SLS decision quite easy. COS 08 wasn't even a decision.

[sizematters]

put quite simply it means that cathay is buying their own shares at a Bargain basement price as they know they will go back to 13-19 HK$$$ in the next year.....................

they ain't exactly as dumb as some of you lot would like to believe...................

[flyboy007]

Concur Size, however it doesn't do much for the 'goodwill' element of taking up SLS.

[The Green Machine]

If this turns out to be true, and by the looks of it, seems to be factual. Then it really sheds a whole new light on the present 'FINANCIAL' situation.

[mr did]

Try this from the Cathay web site:

http://downloads.cathaypacific.com/cx/investor/2009Mandate_EN.pdf

[Old China Driver]

Gentlemen,

I seldom am outraged by this company anymore, as I have been witness to so many such events. This news however deserves far more publicity. It is unconscionable that at the same time they are asking their staff for cuts in basic pay, they are using hundreds of millions to repurchase shares. A friend of mine is the Managing Director of another large HK company, and he told me that this has left him speechless. Regardless of all the issues inherent in the latest proposal from the company, the timing of this repurchase plan can only be considered a deliberate humiliation. To give the company any type of victory in this debacle will only lead to yet more erosion of your careers. As someone who has been here a long time, I can assure you that the only hope you have to protect the value of your career is to stand up to this appalling attack. Vote NO.

OCD

[N1 Vibes]

OCD,

of course being an Old China 'hand' you will have seen that HK companies shaft any thing/body with a pulse to make a profit - PCCW anybody(?). So why get upset - either move to a company that 'loves' it's employees, in another part of the world. Or sit tight and wait until CX plays nice again and you can count you wages/housing/apartments etc in the good times and have another beer.....

Regards,

N1 Vibes

[goathead]

Rumour that's all it is.......

or is it ?

[bogie30]

please tell me this is a joke!

[Harbour Dweller]

This is no joke or just a bad rumour... It's happening!!!

Check the link on mr did's post above.

Direct from CX themselves.

[Humber10]

Like Mr Did said check out the link that was posted, or you can follow the link below and download the pdf file under '2009 AGM'. It's no joke :yuk:

Cathay Pacific - (http://www.cathaypacific.com/cpa/en_HK/aboutus/investor/announcement?isSubChannel=true)

This is when the CEO stood up in his briefing and stated that cx didnt have enough cash to pay its monthly bills, comparing it to us not being able to pay our monthly mortgages.... :yuk:

[mr did]

The following is the Explanatory Statement required to be sent to shareholders under the Listing Rules
in connection with the proposed general mandate for repurchase of shares and also constitutes the
Memorandum required under section 49BA of the Companies Ordinance.
1. It is proposed that up to 10 per cent of the Company’s shares in issue at the date of the passing of
the resolution to approve the general mandate may be repurchased. As at 12th March 2009, the latest
practicable date for determining such figure, the number of shares in issue was 3,933,628,572. On
the basis of this figure (and assuming no shares are issued or repurchased after 12th March 2009
and up to the date of passing such resolution) the Directors would be authorised to repurchase up to
393,362,857 shares.
2. The Directors believe that the ability to repurchase shares is in the interests of the Company and its
shareholders.
Repurchases may, depending on the circumstances, result in an increase in net assets and/or earnings
per share. The Directors are seeking the grant of a general mandate to repurchase shares to give the
Company the flexibility to do so if and when appropriate. The number of shares to be repurchased on
any occasion and the price and other terms upon which the same are repurchased will be decided by
the Directors at the relevant time having regard to the circumstances then pertaining.
3. It is envisaged that the funds required for any repurchase would be derived from the distributable
profits of the Company.

[Dragon69]

What a fu:mad:ng joke!

[Interested_Party]

I think that there is a lot of good will out there towards the company. But if this is for real... namely we are giving up our salaries and at the same time the company comes up with $3bn in CASH to buy back shares.......... Is that what this rush has all been about?

I suppose that the buy-back of shares is a good idea financially as they are low, but timed with SLS make this a direct pay from us. I expect we will see it all back in profit share.... or directors bonuses?:=

[Air Profit]

N1 Vibes. ...'why get upset'...? Well, why don't you tell me? I suppose your preferred alternative is to spend your life just 'accepting' whatever happens, no matter how egregious. You go ahead and 'accept' whatever happens. The rest of us will put up the best fight we can, regardless of outcome. Enjoy your role as a spectator...:yuk: (what's cantonese for 'spineless'...?)

[arse]

And after they buy the stock back, they can give us stock options in return for our good will!!!!!! :} Yeah, ... I can see that happening! :eek:

[Ex Cathedra]

This one's easy....:

Don't take the SLS and use the money to buy CX stocks instead!

I'd bet a few dollars that this will be more rewarding than any 'compensation' the company 'may' be willing to give later, once they've made a fortune trading their own stock...

[Knutsford]

I think you will find that this is just a poorly reported, or translation of, a general mandate to issue or repurchase shares. Any actual transaction must be reported to HKEx, for example, this one:

http://www.hkexnews.hk/listedco/listconews/sehk/20080310/LTN20080310187.pdf

This is the last transaction I can find for CX, and what a shrewd purchase it was.

These general mandates are extremely common in Hong Kong, although it is usually the issuance of shares with no pre-emptive rights for share holders that is the issue for those concerned with corporate governance. (David Webb and Project Vampire).

Make your own mind up, but I think this is nothing more than a red herring.

[Waterskier]

It seems they have to aprove the stock repurchase before they can actually do it. Which, if they're considering spending $3.2 billion HKD, it makes you wonder why the big push for SLS/COS 08.

[Air Profit]

If you want to give up your salary to help CX pay to buy back their shares...sign onto SLS and COS08. I don't know about you, but I can hardly wait to help TT and NR trade in the company shares to help inflate their next bonuses. :ok: If I can't eat or pay my bills...at least I have the satisfaction of knowing that the senior management are doing well.

[N1 Vibes]

AP,

don't know the answer to your question - maybe I'll ask my wife.

(to clarify N1 Vibes was born Wilts, UK, near those really old stones, with blue eyes and pasty european skin - but he doesn't go round trumpeting the fact to try and look superior to people of other countries and cultures - do the words xenophobic, un-cultured, moron ring a bell to you at all?)

400 Jockstrp,

it's all about the money to you baby! To me it's all about having a life...

Regards,

N1 Vibes

[Air Profit]

N1 ...'all about having a life'....? Yes, i'm sure that's what the slaves said as they were building the pyramids. One of the most unexpected revelations working for CX was finding that the long held belief that the Brits and Aussies were supposedly made of strong moral-fibre and character was actually a crock. A more spineless bunch couldn't be found. Other than the Canadians and a few other select individuals, this company's pilots are without doubt the weakest d*cks I have ever come across (apologies to anyone in those two groups of spineless weak d*ck nationalities who buck the trend!). N1, you of course represent exactly what i'm talking about. Keep cutting the granite buddy....that pyramid still needs a few more blocks. (but hey, you have a life!). :D

ps. Churchill is turning in his grave seeing what has become of the British race. It's a good thing you don't go 'trumpeting' anything about your land of 'old rocks' as it really doesn't have much to trumpet anymore.

[Busbert]

Over a dozen aircraft going to Victorville...

I wonder how brave all the front-end CEO bus drivers will be when the redundancy letters start hitting the doormats of the houses in Headland Drive.

TT does not strike me as the type that pays for surplus to requirement drivers to sit on their arse at various gweilobars bitching about all that the world owes them.
I don't think anyone buys the notion that professional pilots they are a cut above the rest and don't have to conform to the ways of the little people.
It is a great time to be jobhunting...

[Sqwak7700]

Over a dozen aircraft going to Victorville...

Might want to confirm that figure. And factor in the 777-300 and 747-400ERFs that have arrived in the meantime. Reality is that we are not hiring and we are still technically growing. Until they actually do something with these 777-200s, the fleet is technically still growing. You do the math.

I say we let them award all contractual leave, then we can talk SLS.

They are fighting fires just trying to crew what they got now. :hmm:

[Dragon69]

One of the most unexpected revelations working for CX was finding that the long held belief that the Brits and Aussies were supposedly made of strong moral-fibre and character was actually a crock. A more spineless bunch couldn't be found.


You took the words right out of my mouth :D:D:D. Sadly that was exactly my observation as well.

[Lowkoon]

Why do I feel like I just loaned a guy a tenner to feed his family only to find him at the local track letting it all ride on the 200:1 nag? :mad:

Had they come to us with a share buy back deal rather than a cash loan that they dont have to be paid back, at least the workers would have shared in the spoils. When will I cease to be surprised by these guys?

It makes a mockery of their sob story that they are cash strapped.

[Sqwak7700]

Why do I feel like I just loaned a guy a tenner to feed his family only to find him at the local track letting it all ride on the 200:1 nag?

Buyer beware. Just like everything in life. :ok:

[Sir Donald]

Maybe its better for an institutional investor to buy the shares and then have one more member on the board ruminating over COS?Its a good move to buy back your own shares as it gives you greater control!

[Apple Tree Yard]

...it's NOT a good idea to buy them back with MY money...!:mad:

[italiancheeze]

N1 Vibes

No wonder the Pilot Body continues to get :mad: by Management with blokes like you ready to roll over all the time

If you believe you will ever get anything back when loads pick up god help you all

I don't think you are a clown. I know plenty of other blokes who think you're a clown but I don't think you're a clown

Italian Cheeze

[N1 Vibes]

Italiancheeze,

many thanks for not considering me a clown. Should you know some history of Cathay Pacific, you will find that they end up getting what they want in the end. Anybody that comes to work at CX believing that they can change the attitude of CX tend to spend their life in here - i.e. not actually changing anything.

Of course for you to learn a bit more about CX's relationship with the pilot community you could ask somebody to 'list down' all the major efforts (and the results) of the pilot community in recent years and see if they have got Cathay dancing to their beat. I also am naive of the negotiating work that the pilot community performs, as we see so little of it in public....

And of course there isn't a queue of pilots/union officials etc at the CEO's door or sitting in on his presentations making the suggestions that you find here to try and change his mind. On the whole Cathay is what Cathay is, you either accept that when you come here or you don't.

Air Profit,

sorry to have neglected your ego by not responding - you are obviously still living in the 1940's with Sir Winston or is it Tutankhamun. What you will doubtless know is that the 'british' were constructing at Stonehenge a few millennia before the Egyptians - and I don't think there was any slavery involved.

The reason I mention this is because the Egyptians and possibly the early Bitons actually constructed their symbolic statements because they wanted to - the 'slaves' in Egypt and Wiltshire, weren't actually slaves - read a book you might learn something new.

What you have actually illustrated quite well is the fact that those 'slaves' (who of course weren't slaves) worked in a large team to achieve something which they all wanted (it wasn't imposed on them - they accepted what was offered).

Those people who work at Cathay to have a job and see the airline grow (which in general means a perpetuation of ones job) are pretty much following the same ideal.

I suspect those people in Egypt who objected to their conditions, wanted more money or wanted their name carved on the top of the pyramid - generally ended up 'accidentally' falling under one of the slabs of granite - as the pyramid construction moved on.

I'm quite happy to keep pushing my piece of granite - you on the other hand had perhaps better watch you don't trip and end up underneath...

Regards,

N1 Vibes

[CXpletive]

http://www.pprune.org/clear.gif "Fragrant Harbour (http://www.pprune.org/fragrant-harbour-19/) A forum for the large number of pilots (expats and locals) based with the various airlines in Hong Kong. Air Traffic Controllers are also warmly welcomed into the forum."

Wasn't sure if you had read the header "N1 Vibs" , so thought I would cut and paste the Forum title for you.

I am sure there is a Forum for Engineers somewhere on the internet that would welcome you and am equally sure there wont be many Pilots there butting into a forum not actually meant for them.

[N1 Vibes]

CXpletive,

this has been pointed out to me several times before - you could complain to the moderator or come and torment me outside Fragrant Harbour in the Tech Log or Engineers and Technicians (actually part of Pprune).

As for the forum threads on PPRune - Fragrant Harbour - when they specifically deal with the 'business' of Cathay Pacific and not the 'business of flying' in HKG, don't you believe that any member of the Cathay Pacific community has an opinion?

Could you point out exactly when the last thread posted on Fragrant Harbour specifically dealt with the business of flying, which one would not expect an engineer to partake in...only pilots?

Oh, and of course - can prove here - in this public forum - that you are a pilot - without revealing your identity?

Regards,

N1 Vibes

[hongkongfooey]

I wonder how brave all the front-end CEO bus drivers will be when the redundancy letters start hitting the doormats of the houses in Headland Drive.


Busbert ( AKA Management stooge ? ) , the figures have already been done on making drivers redundant and re-hiring in 12 months time, this is a fact.
12 months is the absolute maximum CX thinks this crisis will last, thus the recruitment team worked on 12 months.
Guess what :confused: it is cheaper to keep pilots employed, end of story, that is why we all still have jobs, not because of the absolute bull5hit story of keeping the team together, it is just cheaper. :ugh:

[chards]

Spot on Hongkongfooey, they did the figures on that one not so long ago. Had to keep the recruitment department busy somehow right?

[N1 Vibes]

chards, honkongfooey,

with CX trying to flog the 777-200's and the leased A340-300's (and if they don't sell, the leases will not be renewed) - won't that leave an excess of crew - both cabin and flight?

Regards,

N1 Vibes

[chards]

N1 Vibes, I can see why you would come to this conclusion- but lets not forget that even though the game has changed dramatically recently it was only 8 months ago that we were in the midst of the biggest pilot shortage that we have seen. Couple that with the fact that we have the equal amount of new delivery aircraft to offset the disposals then no I don't believe we have an excess crew problem. If the company thought it was an issue they wouldn't be starting new cadet courses as we speak. Not fact but my opinion is that they are looking to save a quick buck short term to "keep the team together" for when the inevitable crew shortage is the next crisis.

[2 cents]

Good god N1, have you nothing better to do with your time????

Your opinion on various matters has been duly noted. Is there any need to keep beating a dead horse?

In general, I, and the majority of pilots have nothing but the highest respect for most of the engineers and all the other staff groups for that matter. Of course there are always exceptions both ways. Now can we please just leave it at that. Next topic....

[CXpletive]

So true 2 Cents, until stumbling upon N1's vitriol, I honestly believed we held a professional and equal respect for each others positions.

[N1 Vibes]

chards, cxpletive,

vitriol here = passion for the job. With the greatest respect I suggest that you also need to work on the 'few exceptions' in your community that may be tarnishing your image, rather than us grubby engineers coming in and giving the few a dusting up.

When I see the behaviour of those few here, it really does worry me about CRM. Doesn't it worry you if you were sat next to them on the flight deck?

Regards,

N1 Vibes

[Dragon69]

'few exceptions' in your community that may be tarnishing your image, rather than us grubby engineers coming in and giving the few a dusting up.


Who exactly are you trying to kid N1. Let everyone browse through your previous posts, they are full of condescending remarks toward the pilot body in general, not just toward a few as you innocently would like to claim now.

You post here trying to look like a modern day Robin Hood, crapping on about, it's not about money for me, it's about the love of my job, and the safety of all those poor passengers, but you know what, people can spot a Bull Sh!tter from a distance and I spotted you miles away because you completely wreaked of it!

I am done arguing with you and your bum buddy. You're here on this forum most likely because you grudgingly took SLS and are venting against us now!

[KRMQQ]

Gentlemen (and others) - what has any of this to do with the topic of this thread which, as most of you seem to have forgotten, is Cathay buying back shares. Talk about focus! Now please stop this childish bickering and get on with some serious bitching elsewhere. It really gets very boring listening to you guys venting your frustrations aimlessly against each other. Some serious anger management needed here! So run along and try get over yourselves and stop showing the world just how unprofessional you really are. You guys must come from 1 child families 'casue you obvioulsy have a problem getting on with other folks and have never learned to listen and discuss issues that run contrary to your own beliefs and ideals.

[Flap10]

KRMQQ,

Agreed, however, the fact about Cathay buying back shares has been made. Do you now want to bicker and bitch about it for several pages, which will eventually make you look like a child, or force the AoA to bring up the issue with the company so we can all take action.

[Bograt]

Added N1 Vibes to "Ignore List"

[jetset]

N1

Didn't England lose the world cup until 1966?

So before then it would be safe to say that they shouldn't have turned up for a game?

Yes, okay, red wine :}

[4 driver]

If everyone ignored N1 he wouldn't continue...... don't take the bait!!