TIGER AIRWAYS BUYS 40% STAKE IN SOUTHEAST ASIAN AIRLINES
Singapore : Tiger Airways Holdings Ltd, one of Asia’s leading low-cost carriers, today completed the transaction to acquire a 40% stake in Southeast Asian Airlines Inc (SEAir) for US$2.5 million.
The US$7 million purchase price, which was agreed with the sellers, has been reduced by liabilities determined in a due diligence review.The investment will be held through Tiger’s wholly-owned subsidiary, Roar Aviation II Pte Ltd.
Tiger is committed to supporting the working capital needs of SEAir, including pre-existing liabilities, with shareholder loans of up to US$40 million. The loan tenure is for five years.
Commenting on the acquisition, Tiger Group CEO Koay Peng Yen, said: “Together with our Philippines’ business partners, our immediate focus will be on scaling up the business through network expansion, building a strong customer base and establishing the airline’s brand presence.”
He said the Philippines has tremendous growth potential and “we welcome the opportunity to be at the heart of it”.The remaining Filipino shareholders, including individual investors, collectively own 60% share of SEAir.The investment in SEAir is Tiger’s second joint venture. Tiger acquired a 33% stake in Mandala Airlines in Indonesia in January 2012.The acquisitions are in line with Tiger’s strategy to expand and develop its business in the region.
13/08/2012 : Tengku Noor Shamsia Tengku Abdullah / Bernama
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