SIA secures over 90% in Tiger Airways; to delist budget carrier

visual from company website

Singapore Airlines (SIA) said it has finally managed to mop up more than 90% stake Tiger Airways, after extending the offer closing date multiple times,  and also being forced to revise the offer price.

The city-state’s flagship carrier can now take the budget airline private.

SIA said it had received commitments for about 36.62 per cent of the total number of issued Tiger Airways shares, and this takes its holdings in the budget carrier to 93.77 per cent, allowing it to delist the latter.

The remaining Tiger shareholders have until 5.30pm on Feb 19 to accept SIA’s offer.

In November 2015, SIA has announced it plans to buy all the shares of Tiger Airways that it does not already own, with the aim of delisting and privatising the latter, in a deal that valued the budget carrier at about S$1.02 billion ($725.46 million).

At that time SIA already owned 55.8 per cent of the low-cost-carrier, and said it would offer S$0.41 per Tiger Airways share in cash, including an option to subscribe for SIA shares at S$11.10 per share.

In January this year, with minority shareholders of Tiger staying put, SIA was forced to hike the offer price by 10% to 45 Singapore Cents per share.

“As announced in the Level of acceptances announcement, as at 5.00 p.m. (Singapore time) on 5 February 2016, the offeror has received in aggregate valid acceptances of the offer in respect of 915,879,067 Shares, representing approximately 36.62 per cent. of the issued share capital of the Company which, when taken together with the shares owned, controlled or agreed to be acquired by the offeror….comprise an aggregate of 2,345,300,908 Shares, representing approximately 93.7 per cent. of the issued share capital of the company,” both SIA and Tiger Airwaves said in separate filings late Friday with the Singapore Exchange.

Tiger Airways had listed in the Singapore exchange at the beginning of 2010 at S$1.50, but its share price had crashed significantly since, and it had never breached the S$1 mark since 2011.

On Thursday, SIA, that is 56% owned by Singapore state fund Temasek,  had announced that its third-quarter operating profit had nearly doubled to S$288 million ($205 million), up 96 percent from a year ago, while net profit rose 35.5 percent to S$275 million, largely on account of lower fuel costs.

“On the competitive front, expansion of other full-service airlines as well as low-cost carriers, particularly in Southeast Asia, will continue to exert pressure on loads and yields,” it had said in a statement, when announcing its results.

Also Read: 

Singapore Airlines offers to buy rest of Tiger Airways, deal values budget carrier at $725m

SIA makes Tiger offer unconditional, extends closing date again to Feb 5

SIA secures only 77.48% in Tiger Airways so far. Forced to raise offer price to S$0.45

 

 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.