The rights issue proposal, reported earlier Tuesday by Bloomberg News, is on the basis of seven rights shares for every 11 existing shares held and would raise about HK$11.7 billion, Cathay said in a statement to the Hong Kong stock exchange Tuesday. The preference shares will be sold to the government for HK$19.5 billion along with HK$1.95 billion of warrants, subject to adjustment.
(June 9): Cathay Pacific Airways Ltd. became the latest global carrier to seek a lifeline in the aftermath of Covid-19 travel restrictions, outlining a plan to raise HK$39 billion (US$5 billion or S$7.0 billion) from the Hong Kong government and shareholders after months of warnings about the frailty of its business.
