Like Tree22Likes

Cathay Pacific: Bailed out ...

Closed Thread
Page 5 of 5 FirstFirst ... 2 3 4 5
  1. #41

    Join Date
    Jun 2019
    Posts
    7,463

    Did CX promised not to layoff any more of their employees in exchange for taking taxpayer money? Did the government stipulate such a requirement?

    Last edited by Coolboy; 09-06-2020 at 03:18 PM.
    BCD likes this.

  2. #42

    Join Date
    Oct 2007
    Posts
    1,896
    Quote Originally Posted by freeier:
    Anyway overall seems like abit replicating what Temasek did for Singapore Airlines.. over there the firepower is much stronger and they already have a proper setup to underwrite all the rights and pref shares, so less controvesial.
    Primarily less controversial because Temasek was already the majority stakeholder, who has no interest - even without its role as a Sovereign Fund - to let its existing investment fail. Not a case of corporate welfare ensuring the wellbeing of existing commercial shareholders.

  3. #43

  4. #44

    Well the market certainly liked it – Cathay's shares rose 2.7% after the suspension was lifted. The deal they got was probably one of the most favourable outcomes that could reasonably be expected with relatively little dilution of existing shareholders and most of the new money being raised by way of a renounceable rights issue which all shareholders can participate in (instead of a very damaging placement) and a low interest loan. In this respect at least, and contrary to my expectations, management have done well.

    jrkob likes this.

  5. #45
    Original Post Deleted
    Unstable character is this market.
    TheBrit likes this.

  6. #46

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    47,971
    Original Post Deleted
    State team was not impressed. Seems like that is what the market is these days....

  7. #47

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,585

    Considering that all holders do still need to fork out money to buy the rights and there are still dilution impact, price of stock coming off is quite expected.. Singapore airline stocks fell 15% over the few days after their rights announcement..


  8. #48

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    47,971

  9. #49

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    47,971

    Today's profit warning:

    The Directors of Cathay Pacific Airways Limited estimate that for the
    six months ended 30 June 2020, the Group will record a net loss attributable to
    shareholders of approximately HK$9.9 billion, which compares to a net profit to
    shareholders of HK$1.3 billion for the same period in 2019. This includes impairment
    charges amounting to approximately HK$2.4 billion, which mainly relate to 16 aircraft
    that are unlikely to re-enter meaningful economic service again before the 2021
    summer season
    and

    Mr Lam said of the airlines’ June traffic performance: “Demand continued to be very
    weak in June with our airlines carrying less than 1% of the passengers we carried in
    the same month in 2019. We operated about 4% of our normal passenger flight
    capacity in June. This was slightly more than we operated in May, having resumed
    services to some destinations such as New York, San Francisco, Amsterdam and
    Melbourne in late June. Load factor remained low at 27.3%, and on average we
    carried approximately 900 passengers a day only.
    More: https://www1.hkexnews.hk/listedco/li...01.pdf?noembed

Closed Thread
Page 5 of 5 FirstFirst ... 2 3 4 5