Cathay to acquire HK Express
#1
Original Poster
Join Date: Oct 2013
Posts: 289
#2
Join Date: Feb 2012
Location: HKG
Programs: CX DM, SPG Pt, Le Club Accor GO, Shangri-La GC Jade
Posts: 1,327
Hopefully our board-mate didn't engage in insider trading
More interested in knowing such arrangement...
Completion is conditional upon certain conditions being fulfilled... the termination or variation of certain arrangements between HKE and its related parties
#4
Join Date: Feb 2012
Location: HKG
Programs: CX DM, SPG Pt, Le Club Accor GO, Shangri-La GC Jade
Posts: 1,327
A firm of solicitors acting for a shareholder of an intermediate holding company of HKE has written to the Company indicating an intention to contest the Seller's entry into an agreement for the Transaction... (CX) has the right under the Share Purchase Agreement to terminate the Share Purchase Agreement if proceedings are commenced to prevent the Transaction
#5
Suspended
Join Date: May 2006
Location: HKG
Programs: A3, TK *G; JL JGC; SPG,Hilton Gold
Posts: 9,952
Last edited by kaka; Mar 26, 2019 at 8:12 pm
#6
Join Date: Jun 2015
Location: New York
Programs: AA, CX, Hyatt, Marriott
Posts: 1,484
"The Acquisition will be conditioned upon, among other things, the approval of the Scheme by the ****** shareholders, the passing of the necessary shareholder resolutions by the ******* shareholders, the sanction of the Scheme by a Jersey court and the receipt of certain regulatory approvals. The conditions to the Acquisition are set out in full in Appendix I to the Rule 2.7 Announcement. It is expected that, subject to the satisfaction or waiver of all relevant conditions, the Acquisition will be completed in the first half of 201X."
But to your point, interested to see HKE does not seem to require disclosure of such agreements.
#7
Join Date: May 2006
Location: SIN
Programs: KF, MPC, BAEC // Bonvoy, WoH, Honors
Posts: 1,462
This definitely appears to be the nail in the coffin for any sort of competitive environment at HKG. Being loyal to CX is no longer going to be a choice (not that it currently is anyway...).
#8
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Location: HKG
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Posts: 9,952
i dont see how a state owned company enhances any competition except causing an unfair advantage
#9
Join Date: Jan 2011
Posts: 2,342
Hopefully the local tycoons do go through with buying HX, and so it'll end up being vs the CX giant...
Either way, better than being kept under the thumb of HNA. One reason the chairman didn't want to sell was because apparently the Chinese govt did not want to sell to a British family business?
Either way, better than being kept under the thumb of HNA. One reason the chairman didn't want to sell was because apparently the Chinese govt did not want to sell to a British family business?
#10
Suspended
Join Date: May 2006
Location: HKG
Programs: A3, TK *G; JL JGC; SPG,Hilton Gold
Posts: 9,952
Hopefully the local tycoons do go through with buying HX, and so it'll end up being vs the CX giant...
Either way, better than being kept under the thumb of HNA. One reason the chairman didn't want to sell was because apparently the Chinese govt did not want to sell to a British family business?
Either way, better than being kept under the thumb of HNA. One reason the chairman didn't want to sell was because apparently the Chinese govt did not want to sell to a British family business?
only the local china liason office who is nosing around
the chinese govt would have told cx to keep their hands off thru the CA 29.99% ownership if china really wants this deal dead... but CX is also writing off the 2.7B debt HX to UO (which is the main reason for this deal)
Last edited by kaka; Mar 26, 2019 at 9:10 pm
#11
Suspended
Join Date: Aug 2010
Location: Vancouver
Programs: CX DM, SQ TPP, QF GO LIFE, OZ*G LIFE, Marriott TIT LIFE, WOH GLOBALIST LIFE, HH DM, BA GO LIFE
Posts: 598
Hopefully our board-mate didn't engage in insider trading
Off course not as no specific details were shared despite the moderator trying to pin down on the information (wishful thinking) even with him locking down the post.
More interested in knowing such arrangement...
Off course not as no specific details were shared despite the moderator trying to pin down on the information (wishful thinking) even with him locking down the post.
More interested in knowing such arrangement...
This acquisition is a sweet deal for CX as they can pick up on HX's downscaling and grow HK Express operations and scale this with their other airline operations.
#12
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,773
Scale includes negative scale right? I thought the justification for the deal is to basically (re-)corner the HKG market and whip ex-HKG til we're all bleeding from places we don't want people to see.
#13
Join Date: Oct 2016
Posts: 291
The arrangements were all the weird arrangements they had with HNA travel agency and how they would account for the revenues which never materialised. The same goes on at Hong Kong Airlines.
This acquisition is a sweet deal for CX as they can pick up on HX's downscaling and grow HK Express operations and scale this with their other airline operations.
This acquisition is a sweet deal for CX as they can pick up on HX's downscaling and grow HK Express operations and scale this with their other airline operations.
#15
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong, France
Programs: FB , BA Gold
Posts: 15,545
It is a sad day for HongKongers.
With the help of their government buddies blocking the creation of other HK-based airlines, CX manages to eliminate competition. No surprise that exHKG is the most expensive origin in Asia.
With the help of their government buddies blocking the creation of other HK-based airlines, CX manages to eliminate competition. No surprise that exHKG is the most expensive origin in Asia.