Cathay Pacific Airways has issued this statement:
Cathay Pacific Airways Limited on March 27, 2019 announced it has reached agreement to acquire Hong Kong Express Holding Company Limited for HK$4.93 billion, comprising (i) a cash consideration of HK$2.25 billion payable in cash; and (ii) a non-cash consideration of HK$2.68 billion settled through the issue and novation of promissory loan notes.
Completion is conditional upon certain conditions being fulfilled, including clearances required from relevant competition authorities, consents under relevant contracts of HKE and the termination or variation of certain arrangements between HKE and its related parties.
The performance of the Seller’s obligations under the Share Purchase Agreement is guaranteed by the Seller’s Guarantor.
Upon completion of the Transaction on or before December 31, 2019, HKE will become a wholly-owned subsidiary of Cathay Pacific.