Sri Lanka, Nov. 6 -- State-owned Qatar Airways has decided to sell its entire stake in Cathay Pacific Airways for about US$897 million (HK$6.97 billion), marking its complete exit from Hong Kong's flagship airline.

Cathay said late on Wednesday (Nov 5) that the Doha-based carrier had approached it about selling its entire 9.7 per cent stake, and it would repurchase the shareholding through a buyback at HK$10.8374 per share, roughly a 4 per cent discount to its last closing share price.

The Gulf carrier had purchased the stake in November 2017 from Hong Kong's Kingboard Chemical Holdings, making it the third-largest shareholder in Cathay Swire Pacific and Air China.

Cathay is paying roughly a 35 per cent premium over the price Qatar Ai...