Cathay Pacific has officially announced a total acquisition of HK Express, making it a wholly owned subsidiary of the international carrier.
The 100% share purchase agreement cost HK$4.93 billion (Split between HK$ 2.25 billion cash and HK$ 2.68 billion non-cash) with the transaction expected to complete on or before 31 December 2019.
Cathay has made clear that they see the two airline’s business as complementary and intend to continue to operate HK Express as a stand-alone airline using the low-cost carrier business model. This takeover follows weeks of rumour, with news of the agreement being leaked yesterday. It also follows a massive brand refresh for HK Express.
Cathay’s official statement read:
“HKE captures a unique market segment and together with the extensive network of the Cathay Group could multiply connection opportunities through Hong Kong. This represents an attractive and practical way for the Cathay Group to support the long-term development and growth of our aviation business and to enhance the competitiveness of the Hong Kong hub during a time of intense regional competition.”