Cathay Pacific (00293) has signed a repurchase agreement with the warrants holder to repurchase all warrants

According to the Zhitong Finance App, Cathay Pacific (00293) issued an announcement that the company will issue warrants to share warrant holders on August 12, 2020. On the date of this announcement (after the transaction period), the company signed a repurchase agreement with the warrant holder to repurchase all warrants.

According to the repurchase agreement, the total cost of repurchasing all warrants is equal to the number of shares in the warrant multiplied by: (a) HK$3.48 if the volume-weighted average price after signing is lower than or equal to the pre-contract reference price; or (b) if the volume-weighted average price after signing is higher than the pre-contract reference price, the reference price after signing exceeds the exercise price.

In other words, the total cost of repurchasing all warrants will not be less than HK$1,532 billion, nor more than HK$1.88 billion.

The completion of the repurchase is unconditional and is expected to occur on the tenth business day after the date the repurchase agreement is signed. Once the repurchase is completed, the warrants will be cancelled.