SINGAPORE Airlines (SIA) today launched a takeover offer for budget airline Tiger Airways, of which it is currently the largest shareholder of, with a stake of 55.8 per cent. Its intention is to delist and privatise the budget carrier with the offer.
SIA is offering Tiger Airways’ shareholders S$0.41 (US$0.29) in cash per share, and they have the option to subscribe to SIA shares at S$11.1043 per share. SIA further stated that the offer, which values Tiger Airways at approximately S$1.02 billion, would be funded through internal cash resources.
SIA CEO Goh Choon Phong said: “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.”
He added: “We are confident that full integration of Tiger Airways into the SIA Group will result in enhanced operational and commercial synergies, ensuring Tiger Airways’ long-term success.”
The option to subscribe for SIA shares is exerciseable at any time during a 15-market day period, which will commence on a date to be announced by SIA.
The offer is conditional upon SIA and parties acting in concert with it owning more than 90 per cent of Tiger Airways by the close of the offer and the approval in-principle for the dealing in, listing of and quotation of the new SIA shares.
