The Hong Kong Government has named Carlson Tong
and Rimsky Yuen as observers to the Board of Cathay Pacific
Airways, with immediate effect.
Both men will serve as observers to the board and
will help safeguard the
government's significant investment in Cathay Pacific.
In June 2020, the Hong Kong Government decided to
invest $27.3 billion in the Cathay Group through the Land Fund,
comprising preference shares with detachable warrants of $19.5
billion and a bridge loan of $7.8 billion to uphold Hong Kong's
status as an international aviation hub amid the threat arising
As part of the
investment agreement, the government is able to designate two
observers to the group's Board of Directors, until the group
repays the government in full the drawn bridge loan and interest
and redeems all preference shares from the government.
The designated observers have no voting rights at
board meetings. They shall have the right to receive notice of
board meetings, attend and speak at all board meetings, receive
all information and papers distributed to the board, and have
access to management and to all information about the company.
Mr Tong has been active in public and community
services, possesses extensive knowledge and significant experience
in the financial services sector, was an Airport Authority board
member and is familiar with the Hong Kong aviation industry's
Mr Yuen is a seasoned legal expert in
commercial and civil matters with vast experience in public
services and administration.
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