Two companies controlled by tycoon Lucio Tan have offered to buy out minority shareholders in PAL Holdings Inc. in a bid to solidify its control of the airline.
PAL Holdings said Buona Sorte Holdings Inc. and Horizon Global Investments Ltd., two companies associated with Mr. Tan, offered to acquire the shares of other minority shareholders in the company.
"Pursuant to the VTO [voluntary tender offer shares] notice, BSHI and HGIL shall accept and acquire all the issued and outstanding common shares held by any minority shareholders of PAL Holdings and Philippine Airlines Inc. who wish to sell their shares,” it said.
PAL Holdings said the purchase price for the voluntary tender offer would be based on BSHI and HGIL’s purchase of the 49 percent stake of San Miguel Equity Investments Inc. in Trustmark Holdings Corp. The tender offer price will be announced in the last week of October.
Trustmark owns 89.78 percent of the issued and outstanding shares of PAL Holdings. PAL Holdings, in turn, owns 98.27 percent of PAL.
Mr. Tan officially regained full control of PAL, the country's flag carrier, in September. San Miguel agreed to sell its 49-percent stake in PAL back to Tan for US$1 billion.
Meanwhile, All Nippon Airways signed a commercial agreement with PAL that would pave the way for the expansion of their operation.
All Nippon Airways and PAL announced they have agreed to establish a commercial partnership covering areas such as code-share and frequent flyer programmes, subject to necessary government approvals. The agreement will benefit customers of both airlines by providing them with greater choice and flexibility.