Cathay Pacific is all set to acquire Hong Kong Express Airlines for $62 million. The initiative is taken by Cathay Pacific airlines is in order to have a firm a foothold in the fast-growing budget travel market.
Cathay Pacific Airways Limited, also known as Cathay Pacific or just simply Cathay, is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport.
Whereas, Hong Kong Express Airways Limited, or HK Express, is a Hong Kong-based low-cost airline part owned by the HNA Group. It provides scheduled air service to 28 destinations in Asia, including China, Japan, Korea, Cambodia, Myanmar, Vietnam, U.S. Territories, Taiwan and Thailand.
Cathay said earlier this month said:
It was in “active discussions” about the acquisition.
The purchase price comprises 2.25 billion Hong Kong dollars of cash and 2.68 billion Hong Kong dollars of non-cash consideration through promissory loan notes, Cathay said in an announcement to the Hong Kong Stock Exchange.
