14-Aug-2012 6:34 PM

Tiger Airways completes transaction to acquire 40% of SEAir

Tiger Airways Holdings Limited completed (13-Aug-2012) the transaction to acquire a 40% stake in Southeast Asian Airlines Inc (SEAir) for USD2.5 million. The purchase price of USD7 million, which was agreed with the sellers, has been reduced by the liabilities determined in a due diligence review. The investment will be held through Tiger’s wholly-owned subsidiary Roar Aviation II Pte Ltd. Tiger stated it is committed to supporting the working capital needs of SEAir, including pre-existing liabilities, with shareholder loans of up to USD40 million. The loan tenure will be five years. Tiger Group CEO Koay Peng Yen said, “Together with our Philippine business partners, our immediate focus will be on scaling up the business through network expansion, building a strong customer base, and establishing the airline’s brand presence. The Philippines has tremendous growth potential and we welcome the opportunity to be at the heart of it.” The remaining Filipino shareholders, including individual investors, collectively own a 60% share of SEAir. The investment in SEAir is Tiger’s second JV. Tiger acquired a 33% stake in Mandala Airlines in Jan-2012. The acquisitions are in line with Tiger’s strategy to expand and develop its business in the region. The airline currently has two A319s and three A320s. More aircraft will be progressively added to build SEAir’s network. [more - original PR]

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