State-owned Qatar Airways has decided to sell its entire stake in Cathay Pacific Airways (0293.HK) for about $897 million (HK$6.97 billion), marking its complete exit from Hong Kong's flagship airline after eight years.

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

The Gulf carrier had bought the stake in November 2017, making it the third-largest shareholder in Cathay after Swire Pacific (0019.HK) and Air China (601111.SS). Cathay is paying roughly a 35% premium over the price Qatar Airways originally paid for the stake to buy it back. The Hong Kong carrier said it would fund the deal

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