SMC takes over PAL, buys out LT Group - via Philippine Star * San Miguel Corp. (SMC) is set to take over national carrier Philippine Airlines (PAL), just a year since the food-to-infrastructure firm first invested in the airline. * The conglomerate has entered into an agreement to buy the remaining 51 percent stake of PAL currently owned by the LT Group of tycoon Lucio Tan, SMC’s top official said. * In a text message, SMC president and chief operating officer Ramon S. Ang said the company would acquire all remaining shares in PAL. * Ang said the transaction would not be conducted through SMC itself but with other units. * In April, SMC’s wholly-owned subsidiary San Miguel Equity Investments Inc. acquired a 49-percent equity interest in Trustmark Holdings Corp. for $500 million. Trustmark owns 97.71 percent of the airline’s parent firm PAL Holdings, which in turn owns 84.67 percent of PAL through PR Holdings Inc. * Another SMC official said the conglomerate is set to provide more details regarding the acquisition tomorrow. * Despite owning just 49 percent of loss-making PAL, SMC gained management control of Asia’s oldest airline. * Since the entry of SMC, PAL has embarked on a massive refleeting program aimed at acquiring 100 new aircraft to replace its existing fleet. It expects to save as much as $400 million from fuel and maintenance costs yearly as part of its refleeting program.
Posted on: Mon, 10 Jun 2013 05:30:04 +0000
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