Paul Chan expects the internal rate of return of the investment to be between 4 percent and 7.5 percent. The Hong Kong government forecasts a net return of 4 percent to 7.5 percent from its HK$27.3 billion investment in Cathay Pacific Group through the multi-billion-dollar Land Fund, the Financial Secretary Paul Chan Mo-po said today. He made the remarks just hours after British conglomerate Swire Pacific, which holds 45 percent of Cathay Pacific, announced a HK$38.9 billion recapitalization plan to strengthen the airline's balance sheet. Chan said the government aims to generate a "reasonable'' return from the investment. Cathay Pacific Group will also make a HK$11.7 billion rights issue of shares to existing shareholders, Chan said.

Source: The Standard June 09, 2020 08:15 UTC