In a deal worth HK$4.93 billion (€558 million) Hong Kong based Cathay Pacific has acquired Hong Kong Express Airways. The low-cost airline, rebranded as HK Express in 2013, operates 23 Airbus A320 on 25 routes from Hong Kong to Japan and Southeast Asia.
It’s expected that the deal is closed by the end of 2019, HK Express’ net asset value is HK$1.12 billion (€117 million), and lost HK$141 million (€16 million) in 2018 while it gained HK$60 million (€6.8 million) in 2017. The acquisition will be paid with HK$2.25 billion in cash and HK$2.68 billion in promissory loan notes, and HK Express will withdraw from U-Fly Alliance.
Cathay Pacific is the flag carrier of Hong Kong, operating 153 long-haul aircraft to 77 destinations.