Cathay Pacific Airways said on Wednesday it had agreed to buy Hong Kong Express Airways from cash-strapped conglomerate HNA Group for 4.93 billion Hong Kong dollars ($628.1 million), giving it a foothold in the fast-growing budget travel market.
Cathay said earlier this month it was in “active discussions” about the acquisition.
The purchase price is comprised of 2.25 billion Hong Kong dollars of cash and 2.68 billion Hong Kong dollars of non-cash consideration through the issue and novation of promissory loan notes, Cathay said.