Grounded: Cathay Pacific aircraft on the tarmac of the Hong Kong International Airport. The airline is proposing the government help it recover from the Covid-19 pandemic. — AP
HONG KONG: Cathay Pacific Airways Ltd has outlined a plan to raise HK$39bil (US$5bil) from the Hong Kong government and shareholders after months of warnings about the frailty of its business because of Covid-19 travel restrictions.
The rights issue proposal, reported earlier yesterday by Bloomberg News, is on the basis of seven rights shares for every 11 existing shares held and would raise about HK$11.7bil, Cathay said in a statement to the Hong Kong stock exchange. The preference shares will be sold to the government for HK$19.5bil, along with HK$1.95bil of warrants, subject to adjustment.
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