San Miguel Corp stated (03-Apr-2012) it is "talks with the controlling stockholders of Philippine Airlines Inc (PAL) and Air Philippines Corporation with respect to the possible investment by the company in PAL and Air Philippines". The comments were made following reports the company had firmed up a deal to acquire 49% of Lucio Tan's PAL Holdings Inc for around USD500 million. The two parties will reportedly meet on 04-Apr-2012 to discuss the details. The investment would mark San Miguel's first foray in the transportation business. Shares in the carrier increased to PHP8.30, the highest close since Oct-2007 on speculation of the stake sale. [more - original PR]
San Miguel Corp in talks to acquire 49% of PAL Holdings
You may also be interested in the following articles...
Turbulence will hurt Southeast Asia’s airlines in 2017 as overcapacity bites
Southeast Asia is a region with enormous growth potential but a relatively cloudy outlook for airlines given the intense competition and overcapacity concerns. Demand is on the rise, boosted by a growing middle class, rising discretionary incomes and relatively strong economies.
Indigo Partners assesses ultra-low cost airline (ULCC) investment opportunities in Southeast Asia
US airline investment firm Indigo Partners is assessing new low cost airline investment opportunities in Asia with a focus on the ultra-LCC or ULCC model. Indigo has not had an investment in Asia since selling its stake in Singapore-based Tigerair five years ago, but currently has large stakes in LCCs based in Europe and North America.
Indigo believes there could be room for a ULCC in the Southeast Asian market despite already intense competition and a huge LCC order book, because the LCCs now operating in this region are not true to the LCC model. Several Southeast Asian LCCs, including Tigerair, are owned by full service airline groups, leading to a dilution of the typical LCC model.
India is also a market of interest for Indigo. However, the firm is not interested in North Asia at this point, despite that region's much lower LCC penetration rate. Australia is also not of interest as it is already mature.