<article><a style="color: #000080;" href="http://www.singaporeair.com/SAA-flow.form">Singapore Airlines Ltd</a> is in talks with South Korea’s <a style="color: #000080;" href="http://www.jejuair.net/jejuair/main.jsp">Jeju Air Co Ltd</a> to acquire a stake in it, either directly, or via the low-cost carrier&#8217;s upcoming initial public offering.</article>

<a style="color: #000080;" href="http://www.singaporeair.com/SAA-flow.form">Singapore Airlines Ltd</a> is in talks with South Korea’s <a style="color: #000080;" href="http://www.jejuair.net/jejuair/main.jsp">Jeju Air Co Ltd</a> to acquire a stake in it, either directly, or via the low-cost carrier&#8217;s upcoming initial public offering.
A Reuters <a style="color: #000080;" href="http://uk.reuters.com/article/2015/03/17/us-singapore-air-jeju-air-equity-idUKKBN0MD03X20150317">report</a> quoted Jeju Air spokesman as stating that the company had been in talks with Singapore airlines since last year for a possible deal and added that the size, pricing and timing of the deal remains undecided.
In a separate development, Singapore Airlines Tuesday informed the local exchange (SGX) that it was in talks with the South Korean carrier.
“Singapore Airlines wishes to confirm that discussions have taken place on a possible equity investment in the airline. These discussions may not result in a transaction. Singapore Airlines will make further public announcements as necessary,” the company said in its filing.
Jeju Air, that is 86 per cent owned by personal care product-to-chemicals <a href="http://www.aekyunggroup.co.kr/" target="_blank">Aekyung Group</a>, is looking to raise capital to expand operations to markets such as China and other North Asian destinations.
On the other hand, Singapore Airlines is looking at growing its portfolio as its profits have been squeezed by competitors in the budget airlines space in the region. The company has expanded to Australia and India recently with stakes in regional carriers and is also investing in new aircraft to claw back market share in the region.
Jeju Air’s over-the-counter shares traded at 31,000 Won today, which gives it a market capitalisation of 682 billion Won ($604 million), according to data compiled by Bloomberg. Singapore Airlines has a market cap of S$13.6, and its shares were trading at $$11.6 as of 10.40 am Tuesday.
Also Read:
<a style="color: #ff0000;" title="VietJet Air expects to raise $800m from IPO" href="http://www.dealstreetasia.com/stories/vietjet-air-expects-raise-80m-ipo-2149/" rel="bookmark">VietJet Air expects to raise $800m from IPO</a>
<a style="color: #ff0000;" title="Indonesia’s Lion Air plans 2016 listing" href="http://www.dealstreetasia.com/stories/indonesias-lion-air-plans-2016-listing-840/" rel="bookmark">Indonesia’s Lion Air plans 2016 listing</a>

Singapore Airlines Ltd is in talks with South Korea’s Jeju Air to acquire a stake in it, either directly, or via the low-cost carrier's IPO

Singapore Air in talks to buy stake in Korea’s Jeju Air

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Singapore Air in talks to buy stake in Korea’s Jeju Air

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief