Non-responsive shareholders will be frozen out.
The clock is ticking for Tigerair shareholders as Singapore Airlines’ (SIA) general offer closes today. With the compulsory acquisition threshold achieved during the offer period, Tigerair will soon be a wholly owned subsidiary of SIA.
According to OCBC, shareholders who did not respond to the offer can expect a letter from SIA on the compulsory acquisition of their shares.
Separately, SIA has also received its first Airbus A350-900, which arrived in Singapore yesterday morning and is the first of the 67 A350 aircraft on order.
OCBC notes that although the new A350s will allow SIA to serve more long-haul destinations with improved fuel efficiency, the yields on the airline’s key routes to Europe are still under pressure as competition heats up with Gulf carriers like Emirates and Qatar Airways.
“While we remain cautiously optimistic on the potential significant savings from cheap jet fuel, we think SIA’s hedging policy may continue to reduce such savings on significant hedging losses,” states OCBC.
Do you know more about this story? Contact us anonymously through this link.