STRINGER | AFP | Getty Images
A Qatar Airways plane takes-off via the Hamad International Airport in Doha on July 20, 2017.
Hong Kong’s Kingboard Chemical Holdings on Monday said the item had agreed to sell its 9.6 percent stake in Cathay Pacific Airways to Middle Eastern carrier Qatar Airways for HK$5.16 billion ($661 million).
Kingboard, an investment holding company, said the item could recognise a gain of HK$800 million on the sale which represented its entire stake from the Hong Kong airline.
Cathay shares have risen by 29.4 percent since the start of January despite the airline in August posting its worst first-half loss in 20 years.
The Hong Kong airline carries a highly concentrated share register with Swire Pacific owning 45 percent in addition to Air China holding 30 percent.
This specific is usually not the very first time Qatar Airways has taken a stake in another airline. The carrier owns 20 percent of International Consolidated Airlines Group, the parent of British Airways, as well as 10 percent of South America’s LATAM Airlines Group in addition to 49 percent of Italy’s Meridiana.
Qatar Airways in addition to Cathay are both members of the oneworld alliance, as is usually British Airways in addition to LATAM.
The Qatari carrier in August dropped plans to build a stake of up to 4.75 percent in American Airlines Group.
Those investment plans were met with suspicion by critics at a time when Qatar is usually embroiled from the region’s worst diplomatic crisis in years in addition to is usually locked in an airspace rights dispute with three some other Gulf states.