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Qatar buys stake in Cathay

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Qatar buys stake in Cathay

Old 6th Nov 2017, 00:54
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Qatar buys stake in Cathay

bluesideoops is offline  
Old 6th Nov 2017, 01:05
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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.
azhkman is offline  
Old 6th Nov 2017, 01:25
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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.
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Old 6th Nov 2017, 01:29
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Where (whose) shares were purchased ?
Flex88 is offline  
Old 6th Nov 2017, 01:32
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cxorcist is offline  
Old 6th Nov 2017, 02:07
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Wow. 10% is a fairly serious stake (although I like the tin-foil hat theory too).
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Old 6th Nov 2017, 02:40
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Tin Foil Hat

Where really was DFO when MIA for nearly 3 months.
Perhaps Cambridge language school learning #Arabic ?

Just a thought.
Flex88 is offline  
Old 6th Nov 2017, 02:46
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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....
Shutterbug is offline  
Old 6th Nov 2017, 02:47
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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.
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Old 6th Nov 2017, 02:56
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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.
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Old 6th Nov 2017, 03:00
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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...
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Old 6th Nov 2017, 03:17
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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"
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Old 6th Nov 2017, 03:28
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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.
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Old 6th Nov 2017, 03:30
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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....
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Old 6th Nov 2017, 04:25
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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.
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Old 6th Nov 2017, 04:50
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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.
wheels_down is online now  
Old 6th Nov 2017, 05:08
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"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!
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Old 6th Nov 2017, 05:13
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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
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Old 6th Nov 2017, 05:26
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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...
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Old 6th Nov 2017, 05:47
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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.
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