Airlines
Cathay Pacific To Acquire Hong Kong Express
Share purchase agreement will give the Hong Kong flag carrier access to the LCC market segment.

Cathay Pacific Airways has entered into a $628 million share purchase agreement to take over budget rival Hong Kong Express in its entirety, the airline announced on Wednesday. Under the terms of the deal, Cathay Pacific will pay $286.6 million in cash and another $341.4 million in the form of promissory loan notes, the company said in a filing to the Hong Kong Stock Exchange. The transaction, which the company expects to complete on or before December 31, will not only make Hong Kong Express a wholly owned subsidiary of Cathay but also give the flag carrier entry into the low-cost carrier (LCC) market.