20-May-2011 9:15 AM

Tiger Airways signs term sheet to purchase 33% stake in Mandala

Tiger Airways signed (19-May-2011) a term sheet for the acquisition of a 33.0% stake in PT Mandala Airlines, subject to due diligence and conclusion of definitive contracts. Mandala, which is currently undergoing a financial restructuring process, plans to adopt a low-cost business model. The largest shareholder in the restructured Mandala will be the Saratoga group, which will hold a 51% stake. The remaining 16.0% will be held by the previous shareholders and creditors of Mandala. The purchase amount has not been disclosed. [more]