Qatar buys stake in Cathay
Thread Starter
Join Date: Jul 2008
Location: UK
Posts: 133
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Mar 2015
Location: Hong Kong
Posts: 83
Likes: 0
Received 0 Likes
on
0 Posts
Wow, that's pretty interesting. The board meetings should be really interesting after this deal closes. SWIRE, Air China, Qatar, all would seem to have a separate interest in how to pillage earnings and dividends from Cathay. Unless ~318k shares does not buy you a board seat.
Or, tin foil hat theory:
Qatar, as a country, has some of RMB bonds issued to pay for the World Cup Stadiums and a license to buy Chinese financial instruments directly within China (it is a rarely issued license); so as a favor back to China, QR buys shares of CX and promises to vote in line with the China-linked & Air China board seats from now on.
Or, tin foil hat theory:
Qatar, as a country, has some of RMB bonds issued to pay for the World Cup Stadiums and a license to buy Chinese financial instruments directly within China (it is a rarely issued license); so as a favor back to China, QR buys shares of CX and promises to vote in line with the China-linked & Air China board seats from now on.
Join Date: Nov 2015
Location: HK-CRoC
Posts: 749
Likes: 0
Received 0 Likes
on
0 Posts
Time To Win
It just doesn't get any better than this... If there was "ANY" airline in the world where the Swire/CX Board of Directors wanted to "develop closer ties" it just has to be the national airline of a country which is being added to "Terrorist Watchlist's" on a daily basis.
You think security screening is bad now, just wait...
Maybe we know know who made money in the "Fuel Hedge" of the century,,, just a thought.
You think security screening is bad now, just wait...
Maybe we know know who made money in the "Fuel Hedge" of the century,,, just a thought.
Join Date: Jul 2009
Location: Location Location
Posts: 99
Likes: 0
Received 0 Likes
on
0 Posts
The sandbox comes to the Pearl River Delta. So who cashed out their shares? That 10% stake came from someone. Wonder if the fuel hedge debacle trail runs through Qatar....
Join Date: Jul 2013
Location: Hong Kong
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
Can only be good news! QR will want to have a say in daily business. If CX is lucky, some fresh blood comes in and helps clear up the management mess at CX. Wouldn't be surprised if this stake increases over time... and, having access to cheaper and plenty of fuel, maybe QR is able to provide a helping hand in CX's hedging... sine CX management has proven to be completely incompetent. Finally, I heard the QR pilots are having good contracts... maybe new opportunity arises for the CX/ KA guys. Can only be good news.
Join Date: Dec 2010
Location: Here ---> X
Posts: 438
Likes: 0
Received 0 Likes
on
0 Posts
I wouldn't be so sure.
The reason Kingboard sold is that they were dissatisfied with Swire's management of CX (duh), and when they offered to buy Swire's 45% controlling stake, they got told to stuff it.
So they walked away from the whole thing, as any smart person would.
I doubt QR is going to have any more say in the sh#tshow than Kingboard did, given Swire's blinding arrogance and blindness to the fact that they're driving the airline to the ground.
The reason Kingboard sold is that they were dissatisfied with Swire's management of CX (duh), and when they offered to buy Swire's 45% controlling stake, they got told to stuff it.
So they walked away from the whole thing, as any smart person would.
I doubt QR is going to have any more say in the sh#tshow than Kingboard did, given Swire's blinding arrogance and blindness to the fact that they're driving the airline to the ground.
Join Date: Apr 2002
Location: HK
Posts: 51
Likes: 0
Received 0 Likes
on
0 Posts
I don't think Kingboard were interested at all in CX, apart from a trading opportunity (bought at around 10 HKD, sold at 13.65)
Al Bakar's management style and attitude will dovetail in very well with CX though...
Al Bakar's management style and attitude will dovetail in very well with CX though...
Join Date: Nov 2015
Location: HK-CRoC
Posts: 749
Likes: 0
Received 0 Likes
on
0 Posts
Baseboard Chemical
Baseboard Chemical will realise 800 million in it's well executed "flipping" strategy treating CX shares similar to, and with the same respect as, the way Mainlanders flip Hong Kong Swire Properties apartments.
Ahhhhhhh,,, Capitalism "Asian Style"
kingboard.com
Ahhhhhhh,,, Capitalism "Asian Style"
kingboard.com
Join Date: Jul 2005
Location: Hong Kong
Posts: 1,117
Likes: 0
Received 0 Likes
on
0 Posts
Apparently CX had no idea that QR was going to buy the Kingston shares. They were sleeping at the wheel again. This now will prevent The Chinese from taking over the airline as 25% of shares need to be available to the public at all times.
Join Date: Nov 2015
Location: HK-CRoC
Posts: 749
Likes: 0
Received 0 Likes
on
0 Posts
Share Acquisition
Commenting on the share acquisition, "Rupert Hogg said: “Qatar Airways is one of the world’s premier airlines"
Forgot to mention the "Terror Lists" so many from that fine state are on..
But then, I'm sure the Hogman and "Senior Leadership" will properly address this nasty little issue at all the upcoming "Quarterly "Engagement" Forums"..
You just can't make this up....
Forgot to mention the "Terror Lists" so many from that fine state are on..
But then, I'm sure the Hogman and "Senior Leadership" will properly address this nasty little issue at all the upcoming "Quarterly "Engagement" Forums"..
You just can't make this up....
Join Date: Nov 2007
Location: hong kong
Posts: 80
Likes: 0
Received 0 Likes
on
0 Posts
Judging by the length and content of the CX statement on this I highly suspect London did not see this coming. And I also suspect this is only the first step in an imminent change of power.
Join Date: Apr 2010
Location: Asia
Posts: 1,030
Likes: 0
Received 0 Likes
on
0 Posts
They won’t be having a lot to say for such a small share.
Bit like Etihads investment in Virgin. Apart from code sharing they have nil input on the operation unless they went in for a takeover.
Bit like Etihads investment in Virgin. Apart from code sharing they have nil input on the operation unless they went in for a takeover.
Join Date: Jul 2013
Location: Hong Kong
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
"They were sleeping again" is quite an inappropriate statement. "Still sleeping" (since years) is surely more accurate. CX have been overtaken by so many airlines, most noticeably QR, in so many areas (hard ware, software, profitability)... read this forum... CX is probably the most hated employer in Hong Kong, if not Asia. So yes, in times of pilot shortage and other airlines doing anything they can to retain pilots, CX intentionally is trying to get rid of some of the best in the industry... there are many things they don't see coming. Be assured QR will want to get involved; because they want their investment to be profitable, something that Swire seems unconcerned of (why else would you do the things they are doing...). It will only be to the better of all CX staff, customers and therefore the company. Be assured!
Join Date: Nov 2015
Location: HK-CRoC
Posts: 749
Likes: 0
Received 0 Likes
on
0 Posts
Wheels Down
You don't need 10% of a company to code share 
London didn't see this coming same as the "Hedge from Hell".
I feel better already, maybe the Army guy from the Borneo boat fleet will get promoted again to "Grand Leader" and sort this out...
This will be case study material for "How to manage incompetence " at every level.
I've said it before "The Peter Principle" Time to Win
London didn't see this coming same as the "Hedge from Hell".
I feel better already, maybe the Army guy from the Borneo boat fleet will get promoted again to "Grand Leader" and sort this out...
This will be case study material for "How to manage incompetence " at every level.
I've said it before "The Peter Principle" Time to Win
Join Date: Jul 2013
Location: Hong Kong
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
From CX website:
"Statement regarding Cathay Pacific shareholding ownership
Qatar Airways Q.C.S.C. (‘Qatar Airways’) has announced today that it has acquired approximately 9.61 per cent stake in Cathay Pacific Airways Limited (‘Cathay Pacific’). Both Cathay Pacific and Qatar Airways collaborate together as members of the oneworld alliance.
Air China Limited and Swire Pacific Limited together continue to hold 74.99 per cent shares of the airline.
Commenting on the share acquisition, Cathay Pacific Chief Executive Officer, Rupert Hogg said, “Qatar Airways is one of the world’s premier airlines. We already work together closely as fellow members of the oneworld alliance and we look forward to a continued constructive relationship."
Doesn't look like CX was informed in any way... well, that's one thing, but how embarrassing is admitting to it so publicly through such terrible press release. Who is responsible for that and what is his/ her profession in real life? What a company...
"Statement regarding Cathay Pacific shareholding ownership
Qatar Airways Q.C.S.C. (‘Qatar Airways’) has announced today that it has acquired approximately 9.61 per cent stake in Cathay Pacific Airways Limited (‘Cathay Pacific’). Both Cathay Pacific and Qatar Airways collaborate together as members of the oneworld alliance.
Air China Limited and Swire Pacific Limited together continue to hold 74.99 per cent shares of the airline.
Commenting on the share acquisition, Cathay Pacific Chief Executive Officer, Rupert Hogg said, “Qatar Airways is one of the world’s premier airlines. We already work together closely as fellow members of the oneworld alliance and we look forward to a continued constructive relationship."
Doesn't look like CX was informed in any way... well, that's one thing, but how embarrassing is admitting to it so publicly through such terrible press release. Who is responsible for that and what is his/ her profession in real life? What a company...
Join Date: Oct 2017
Location: Vancouver
Posts: 152
Likes: 0
Received 0 Likes
on
0 Posts
The board in London was taken completely by surprise by this move. Financial Times does not see this as a positive but rather Qatar trying to broaden its global base and get a foot into the China market by stealth AND a money laundering exercise by Kingford who sold all it's shares having decided CX was a lost cause under Swire control.
Qatar already owns 20% of IAG ( BA, IB, EI ) and is now the largest single entity in One World.
Qatar already owns 20% of IAG ( BA, IB, EI ) and is now the largest single entity in One World.