Singapore Airlines (SIA) has revealed that it now owns, controls or has agreed to acquire 79.22 per cent of Tigerair’s shares.
As reported by Business Traveller Asia-Pacific (see here) last year, the Star Alliance member, which previously owned a majority 57 per cent stake in Tigerair, was looking to acquire all shares of its low-cost carrier subsidiary.
SIA first offered Tigerair shareholders S$0.41 (US$0.28) per share, but this was subsequently raised to S$0.45 (US$0.31) on January 4. The revised rate has been declared unconditional by Singapore’s national carrier, which also extended the closing date for its offer from January 22 to February 5.
“We wish to thank Tiger Airways shareholders who have already accepted the offer. With the offer being declared unconditional, we are providing certainty that these shareholders will be paid the final offer price of S$0.45 for their shares within 10 days,” said SIA chief executive Goh Choon Phong.
Existing Tigerair shareholders who accept the offer will also be entitled to subscribe to SIA’s own shares at a cut-down rate of S$11.1 (US$7.71) per share within 10 days, reported Channel News Asia.
In order to truly privatise Tigerair and delist it from the market, SIA would need to own more than 90 per cent of the LCC’s shares. The existing control of 79.22 per cent of the relevant shares is not currently sufficient for SIA to take full ownership, but shareholders who do accept the offer will be paid in full even if it fails to take control of the required 90 per cent by the closing date.
For more information, visit singaporeair.com