Sin­ga­pore Air to delist Tiger Air

The Pak Banker - - BUSINESS -

Sin­ga­pore Air­lines Ltd. will take Tiger Air­ways Hold­ings Ltd. pri­vate af­ter more than 90 per­cent of share­hold­ers ac­cepted its of­fer valu­ing the low-cost car­rier at about S$1.13 bil­lion ($802.4 bil­lion).

Tiger Air share­hold­ers em­braced a sweet­ened of­fer of 45 Sin­ga­pore cents a share made last month, com­pared with Sin­ga­pore Air's orig­i­nal pro­posal of 41 cents a share from Novem­ber. The flag car­rier re­ceived ac­cep­tances for 93.8 per­cent of Tiger Air as of Feb. 5, it said in a state­ment late Fri­day.

Sin­ga­pore Air said it will ex­tend the of­fer clos­ing date to Feb. 19 and sus­pend the trad­ing of Tiger Air shares there­after, a move planned af­ter the bud­get air­line ex­panded too much amid com­pe­ti­tion that has led other car­ri­ers such as Malaysia Air­lines Ltd. to go pri­vate or col­lapse. Tiger Air has been re­struc­tur­ing its op­er­a­tions, in­clud­ing can­cel­ing un­prof­itable routes and cut­ting ca­pac­ity, but still has posted losses in nine of the past 12 quar­ters.

Tiger Air gained 1.1 per­cent to close at 46 Sin­ga­pore cents Fri­day be­fore the an­nounce­ment, ex­ceed­ing Sin­ga­pore Air's of­fer. The flag car­rier, which re­ported profit that beat es­ti­mates af­ter the mar­ket's close Thurs­day, rose 3.9 per­cent to S$11.24.

Un­der Sin­ga­pore takeover laws, the flag car­rier needs to ac­quire at least 90 per­cent of Tiger Air shares to take it pri­vate. Share­hold­ers of the bud­get air­line were also given the op­tion of buy­ing Sin­ga­pore Air shares at S$11.1043 each.

Sin­ga­pore Air had ac­cep­tances for 77.48 per­cent of Tiger as of Jan. 4, when it im­proved the bid. The higher of­fer came af­ter the Se­cu­ri­ties In­vestors As­so­ci­a­tion Sin­ga­pore, which cam­paigns on be­half of mi­nor­ity share­hold­ers, urged the air­line's board to con­sider rais­ing the price, not­ing that Sin­ga­pore Air paid 56.5 cents a share to boost its Tiger Air stake in 2014.

Sin­ga­pore Air in­jected funds into Tiger Air in 2014 by in­creas­ing its stake and mak­ing the frills-free car­rier a sub­sidiary.

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