PAL acquiring Air Phl via P8.24-B stock swap

PAL Holdings Inc. is planning to acquire full ownership of Zuma Holdings and Management Corp., owner of Air Philippines Corp., through a share swap transaction valued at P8.24 billion.

In a disclosure to the Philippine Stocks Exchange (PSE), PAL Holdings said it would issue 1.647 million shares from its authorized but unissued capital stock to acquire the 86.73 million Zuma shares currently held by Cosmic and Horizon,” the disclosure read.

PAL’s shares are currently valued at P5 per share, translating to a total issue value of P8.24 billion.

The transaction will require regulatory approval from the Securities and Exchange Commission and the Philippine Competition Commission (PCC).

Zuma owns 99.97 percent of Air Philippines or Airphil Express.

Upon approval of the regulators, PAL Holdings will indirectly own Airphil Express through Zuma as one of its subsidiaries.

PAL Holdings said the transaction was intended to rationalize and consolidate the airline businesses of the Lucio Tan Group.

“With the integration of the two airlines under PAL, it is expected that the companies can streamline its processes thereby enhancing the transportation experience of the riding public, reducing costs and increasing revenue,” the company said.

It added this initiative would make PAL a more viable investment for investors amid the competitive nature of the airline industry.