Singapore Airlines offers to buy out Tigerair
Sunday, 09 Nov, 2015
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Singapore Airlines plans to buy out the remaining shares it doesn’t own in subsidiary Tigerair.
The airline offered to pay S$453 million and take the loss making low cost carrier private.
That offer represents a 32% premium on its current share price.
"Tiger Airways’ development potential is limited without deeper integration with the SIA Group to build a strong foundation for growth over the long term," Singapore Air CEO Goh Choon Phong said in statement.
"Tiger Airways’ success is closely linked to it being part of the SIA Group through our portfolio strategy, in which we have investments in both the full-service and low-cost aspects of the business."
SIA currently holds a stake of 55.8% in Tigerair.
SIA said it would fund the buyout with internal cash reserves, which values the budget airline at about S$1.02 billion.
"We believe our offer to Tiger Airways shareholders is compelling as a significant premium is being offered and hope that it will be considered favourably," Goh added.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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