Tuesday, June 5, 2012

Tiger Airways Acquires 40% Stake in SEAir

Low cost carrier Tiger Airways has completed its acquisition of a 40% stake in SEAir.  SEAir was established in 1995 in the Philippines and operates domestic flights and international flights to countries such as Singapore, Hong Kong, Bangkok and Kota Kinabalu. The update from OSK DMG as follows:

The news: Tiger Airways has finalized its acquisition of a 40% stake in Southeast Asian Airline (SEAir), which will be acquired from existing foreign shareholders at US$7m, less liabilities to be confirmed at a due diligence review. Under the terms of the S&P, US$2m is to be paid on closing and the remainder minus liabilities and the retention sum to be paid within five business days from the final determination of the liabilities. We note that Tiger has made a S$7m provision for SEAIR in 3QFY12 which largely stems from the two A319 aircrafts currently leased from Tiger under the Tiger Partner Airline programme. While the Group expects no change in NTA post acquisition, there will  be an additional loss of S$ 1.21 cents per share if accounts had been consolidated for the FYE Mar

It was also reported that there are plans to expand the fleet to 5 aircraft, up from the current 2.  SEAir will be adopting Tiger Airway's business model, offering budget fares to international and domestic destinations that are within a five hour flying radius from Philippines.

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