Philippine Airlines backdoor listing seen

Manila (XFNews-ASIA) - Shareholders of Baguio Gold Holdings Corp approved the increase in the company's authorized capital stock to 20 bln pesos from 400 mln at their meeting today, paving the way for its acquisition of a majority interest in Philippine Airlines Inc (PAL).

Baguio Gold will change its name to PAL Holdings possibly after acquiring an 81.57 pct stake in unlisted PAL, officials said.

Jaime Bautista, president of both Baguio Gold and PAL, said the acquisition will not require prior approval of PAL creditors since there will be no real change in ownership of the airline.

The two companies are owned by tycoon Lucio Tan.

"PAL would still have the same shareholders. This is just part of the corporate restructuring that we're undertaking," Bautista told reporters.