Qatar Airways continues to invest in the airline industry, announcing Monday that it has agreed to purchase a 9.6 percent stake in Cathay Pacific.
According to CNBC, Hong Kong-based investment holding company Kingboard Chemical will sell its entire stake in the Asian carrier for $661 million.
"Qatar Airways is pleased to announce that it has entered into an agreement to purchase an amount of 378,188,000 shares of Cathay Pacific Airways Limited. Completion of the transaction is expected to take place later today in Hong Kong," the Gulf airline said in a statement Monday.
The purchase will make Qatar Airways the third strategic shareholder behind Swire Pacific and Air China, which hold 45 percent and 30 percent, respectively.
"Cathay will have three major shareholders, all with different and potentially conflicting interests-Swire, Air China and Qatar Airways," Corrine Png, CEO of transport research firm Crucial Perspective told Reuters. "This may not necessarily be favorable for Cathay as it is facing operating challenges and undergoing transformation."
Despite Cathay Pacific having recently reported its worst first-half loss in two decades, Doha-based Qatar Airways sees tremendous potential.
"Cathay Pacific is a fellow oneworld member and is one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future," said Qatar Airways CEO, Akbar Al Baker in a statement. "Qatar Airways is very pleased to complete its financial investment in Cathay Pacific."
CNBC reports Cathay Pacific shares have risen by more than 29 percent since January.
Qatar's ongoing conflict with its Middle East neighbors has motivated the country's flag carrier to seek opportunities elsewhere around the globe. The airline's stake purchase in Cathay Pacific represents its first investment in an Asian airline.
Qatar Airways already owns a 20 percent stake in British Airways parent International Airlines Group and 10 percent of South America's fast-expanding LATAM Airlines Group. The airline also boasts a 49 percent stake in Italian airline Meridiana.
In July, Qatar Airways announced plans to invest at least $808 million in American Airlines. However, the airline quickly changed course.
"Qatar Airways will continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives," it said in a statement in August.
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