San Miguel in talks over PAL after stake-sale report

San Miguel Corp. on Monday said it was "discussing" with investment partner Lucio Tan Group their respective interests in Philippine Airlines parent PAL Holdings Inc., after local media reported San Miguel had agreed to sell its stake.

 

San Miguel indirectly bought almost half of PAL from Lucio Tan for $500 million in 2012, giving the diversified conglomerate management control of Philippine Airlines and Air Philippines.

 

That transaction left San Miguel and Lucio Tan with 49 percent and 51 percent respectively of Trustmark Holdings Corp., which in turn owns 90 percent of PAL.

 

On Monday, the Philippine Daily Inquirer cited unnamed industry sources as saying San Miguel President Ramon Ang had agreed to sell back the conglomerate's interest as early as last year.

 

"An appropriate disclosure shall be made in the event a definite agreement is concluded by the parties," San Miguel said in a filing to the Philippine Stock Exchange following the newspaper report.

 

Ang did not reply to a text message from Reuters requesting comment. Representatives of Lucio Tan could not immediately be reached for comment.

 

PAL shares have fallen 8 percent this year compared with a 28 percent rise for San Miguel and 16 percent rise in the benchmark.  – VS, GMA News