Cathay Pacific to buy budget airline HK Express for $628 million
The deal is expected to complete by December 2019, according to the company filing
Hong Kong flag carrier Cathay Pacific announced on Wednesday that it will buy budget airline HK Express for $628.15 million, as it moves to counter competition from the increasing number of low-cost carriers in the region.
The HK $4.93 billion acquisition leaves Cathay Pacific in control of three of the four airlines in Hong Kong, adding to its namesake carrier and regional subsidiary Cathay Dragon.
Cathay will pay HK $2.25 billion in cash for HK Express, and issued HK $2.68 billion promissory loan notes, the company said in a filing.
