---
title: "In \"The Big Banks,\" Citigroup: Air China repurchasing Qatar Airways shares is negative news"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/264554720.md"
description: "CATHAY PAC AIR announced the repurchase of Qatar Airways' 9.57% stake at HKD 10.8374 per share, with a total cost of approximately HKD 6.97 billion, reducing the public float to 20.53%. Lyon believes this news is a net negative; although the repurchase price is below the market price, the shares will be held as treasury stock with no signs of cancellation. The Hong Kong Stock Exchange's exemption for public float can alleviate future equity financing concerns, giving Cathay a \"Hold\" rating"
datetime: "2025-11-06T03:54:51.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/264554720.md)
  - [en](https://longbridge.com/en/news/264554720.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/264554720.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/264554720.md) | [繁體中文](https://longbridge.com/zh-HK/news/264554720.md)


# In "The Big Banks," Citigroup: Air China repurchasing Qatar Airways shares is negative news

CATHAY PAC AIR (00293.HK) announced that, according to a commitment deed, it will repurchase all of its 9.57% stake (a total of 643,076,181 shares) from Qatar Airways at a repurchase price of HKD 10.8374 per share. This repurchase price represents a 3% discount to the five-day volume-weighted average price, implying a total cost of approximately HKD 6.97 billion. After the transaction is completed, CATHAY PAC AIR's public float will decrease to about 20.53%. The announcement stated that the repurchased shares will be held as treasury stock.

Citi's report indicated that, in the bank's view, this announcement seems to be net negative. Although CATHAY PAC AIR is repurchasing shares at a price that is 4% lower than the last closing price, there are currently no signs that the repurchased shares will be canceled (the announcement only mentioned that they will be held as treasury stock). However, the Hong Kong Stock Exchange's exemption for public float requirements (minimum 25%) should alleviate market concerns about potential future equity financing. The bank has given CATHAY a "Hold" rating

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