Tiger Airways acquires 40% stake in SEAir
The US$7m deal may finally allow Tiger Airways to collect the S$7m owed by SEAir.
The new term sheet replaces the initial negotiations of US$6m for a 32.5% stake. This strategic joint venture will also help TGR absorb upcoming new aircraft deliveries around the region.
Here's more from OCBC Investment Research:
Tiger Airways (TGR) said it has signed a revised term sheet with existing foreign investors for it to purchase a 40% stake in the Philippines’ South East Asian Airlines (SEAir) for US$7m. The new term sheet replaces the original, where TGR was to acquire a 32.5% stake in SEAir for US$6m.
This is a positive development to TGR because 1) its strategy of forming joint-ventures around the region will help it to absorb the upcoming new aircraft deliveries, and 2) this increases the chance of TGR collecting the S$7m owed by SEAir for the sub-leasing of two A319 aircraft. However, TGR’s core operations should only improve later this year when its Australian service ramps up to optimal capacity.
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