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San Miguel acquires 49% stake in Philippine Airlines

4-Apr-2012 6:53 PM

San Miguel Corporation (SMC) and Lucio Tan confirmed (04-Apr-2012) the signing on 03-Apr-2012 of investment agreements that will result in the issuance of new shares to the diversified conglomerate for a minority stake in Philippine Airlines Inc (PAL) and low-cost partner Air Philippines Corporation (Air Phil). San Miguel acquired the 49% stake for USD500 million as part of its strategy to move away from its beer and food businesses. Under the agreement, Trustmark Holdings Corporation (Trustmark) and Zuma Holdings and Management Corporation (Zuma), the holding companies of PAL and Air Phil will issue new shares to San Miguel Equity Investments Inc, a wholly-owned subsidiary of SMC. Trustmark and Zuma are majority owned by Mr Tan. Mr Tan and San Miguel president and COO Ramon S Ang said the new investment will allow the two airlines to "strengthen operations and stay competitive with the implementation of PAL and Air Phil’s fleet modernisation program". Mr Ang said San Miguel welcomes the opportunity to participate in the re-fleeting and modernisation plans of the two airlines. [more - original PR]