Investors’ group in talks to buy 51% stake in PAL
Conglomerate San Miguel Corp. (SMC) on Monday said that it was not the buyer of tycoon Lucio Tan’s remaining 51-percent stake in flag carrier Philippine Airlines Inc.
SMC, which already owns 49 percent, instead said that Tan was indeed in talks with unnamed investors to divest of his stake in the airline reportedly valued at $500 million.
“We have been advised by the LT Group [of Lucio Tan] that the latter is in talks with a group of investors who have expressed an interest to purchase such majority interest of the LT Group in [Philippine Airlines and PAL Holdings],” the company said in a filing at the Philippine Stock Exchange.
SMC president Ramon S. Ang did not respond to a query when asked whether he was among the interest investors in his personal capacity. SMC gained 2.1 percent to P97 a share Monday.
SMC first entered PAL last year when it paid $500 million for a 49-percent stake in the airline. Under that transaction, the conglomerate infused $500 million in equity into the airline and was also handed management control over it.
Ang had said that PAL would return to profitability by next year.
There has been much speculation over SMC’s acquisition plans given a fresh round of fundraising reportedly being done the conglomerate.
SMC is reported to be working with four banks to help sell its 32.8-percent stake in Manila Electric Co., worth about $3.3 billion.
Ang said last week that the company was indeed in talks to sell its Meralco stake but did not elaborate as to what stage discussions were or the identities of potential buyers as a deal has yet to be firmed up.
