San Miguel seals deal selling PAL stake back to Lucio Tan group

Diversified conglomerate San Miguel Corp. has sealed a deal to sell its 49 percent stake in flag carrier Philippine Airlines (PAL) back to the Lucio Tan group, the companies involved confirmed on Tuesday.

 

In separate disclosures to the Philippine Stock Exchange, San Miguel and airline operator PAL Holdings Inc. said the two biggest shareholders of the flag carrier signed a joint agreement for the buyback.

 

"San Miguel expressed willingness to sell its 49 percent stake to the Group of Dr. Lucio C. Tan, and the latter has expressed willingness to buy the said 49 percent stake, subject to the fulfillment of certain conditions," the disclosure read.

 

The confirmation came a day after Reuters, citing unnamed sources, reported San Miguel has signed a $1-billion deal to sell its stake in PAL back to the Lucio Tan group.

 

"San Miguel owns 49 percent of the parent of listed holding company, PAL Holdings Inc, that in turn controls around 90 percent of the airline, which has a market value of about $3.4 billion," according to Reuters

 

"The conglomerate bought its stake in the flag carrier from Tan for $500 million in 2012, giving the conglomerate management control of PAL and affiliate Air Philippines," the wire service added. – Danessa O. Rivera/VS, GMA News