SMC, Tan group look out for other deals after PAL
The Lucio Tan Group and San Miguel Corp. may engage in other big-ticket ventures following their Philippine Airlines deal.
SMC acquired 49-percent stake in PAL.
Lawyer Estelito Mendoza told reporters on Tuesday that SMC’s purchase of the 49-percent PAL stake from Tan’s group for $500 million could be considered a win-win deal for both parties. Since then, the two have been on the lookout for other potential deals.
“There will be future areas of cooperation whenever they believe doing so will be good for both of them,” said Mendoza, who serves as legal counsel for Lucio Tan and SMC chairman Eduardo “Danding” Cojuangco Jr.
When asked if SMC could acquire additional shares in PAL to become majority owner, Mendoza responded in the affirmative.
He said that if SMC were to perform a good job in managing PAL, SMC could purchase more shares.
SMC’s acquisition of additional shares in PAL “will depend greatly on how PAL performs and how SMC succeeds in managing it,” Mendoza said.
The entry of SMC in PAL would enable the airline to pursue its modernization plan amid projections that demand for airline services would increase.
PAL reported a net loss of P3.63 billion in the nine months to December—a reversal of the P3.24 billion in net income it registered in the same period the previous year.
Last year, SMC posted a net income of P28.5 billion.
