Cathay to buy back 10% of company stock
Thread Starter
Join Date: Dec 2007
Location: hong kong
Posts: 16
Likes: 0
Received 0 Likes
on
0 Posts
Cathay to buy back 10% of company stock
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???? 
Join Date: Jul 2000
Location: Smogsville
Posts: 1,424
Likes: 0
Received 0 Likes
on
0 Posts
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.
Join Date: Oct 2004
Location: Earth
Posts: 346
Likes: 0
Received 0 Likes
on
0 Posts
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...................
they ain't exactly as dumb as some of you lot would like to believe...................
Join Date: Apr 2008
Location: On the road
Posts: 160
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Jul 2000
Posts: 16
Likes: 0
Received 0 Likes
on
0 Posts
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
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
Join Date: Oct 2003
Location: Gweriniaeth Cymru
Posts: 577
Likes: 0
Received 0 Likes
on
0 Posts
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
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
Join Date: May 2006
Location: mars
Posts: 206
Likes: 0
Received 0 Likes
on
0 Posts
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 
Cathay Pacific -
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....
Cathay Pacific -
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....
Last edited by Humber10; 25th Apr 2009 at 04:44.
Join Date: Apr 2008
Location: On the road
Posts: 160
Likes: 0
Received 0 Likes
on
0 Posts
The relevant sections
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.
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.
ng joke!
Join Date: Aug 2007
Location: Hong Kong
Posts: 33
Likes: 0
Received 0 Likes
on
0 Posts
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?
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?
Join Date: Apr 2009
Location: No where
Posts: 898
Likes: 0
Received 0 Likes
on
0 Posts
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... (what's cantonese for 'spineless'...?)
(what's cantonese for 'spineless'...?)