Lucio Tan reacquires stake SMC’s 49-percent stake in PAL

The Lucio Tan (LT) Group has reacquired the 49-percent stake of San Miguel Corp. in flag carrier Philippine Airlines.

 

In a statement, the LT Group said its Buona Sorte Inc. (BSHI) acquired nine percent of San Miguel's stake while Horizon Global Investments, Ltd. (HGIL) got 40 percent.

 

"BSHI and HGIL, will make the voluntary tender offer in order to give the minority shareholders of PAL Holdings and Philippine Airlines the chance to sell their shares at the same economic terms and conditions as agreed with San Miguel Equity Investments Inc.," it said.

 

Earlier, San Miguel Equity Investments Inc. had a 49-percent stake in Trustmark Holdings Corp.

 

"Trustmark Holdings Inc. owns 89.78% of the issued and outstanding shares of PAL Holdings, Inc, which in turn owns 98.27% of Philippine Airlines, Inc," LT Group said.

 

However, the LT Group stressed the voluntary tender offer is not for delisting PAL Holdings Inc. from the Philippine Stock Exchange.

 

"Under existing SEC regulations, a company that purchases more than 35% of a listed company in order to gain control has the obligation to comply with the mandatory tender offer requirement," PAL General Manager Jaime Bautista said.

 

"It is the position of the Lucio Tan Group that there is no legal requirement for BSHI and HGIL to conduct a mandatory tender offer of the shares held by the minority shareholders since there was no change in control of Trustmark Holdings and the extent of beneficial ownership of PAL and PAL Holdings. The purchase price for the voluntary offer shall be based on the same economic terms as that given by BSHI and/or HGIL to SMEII Trustmark shares,” he added.

 

Purchase prices for the Voluntary Tender Offer shares shall be paid in cash by Philippine National Bank, Trust Banking Group and PNB Securities Inc., after the verification procedures.

 

Shareholders who wish to sell their shares may contact the PAL Holdings Voluntary Tender Offer Agent and the PAL Voluntary Tender Offer Agent via:

 

- PAL Holdings Voluntary Tender Offer Agent, for the PAL Holdings Voluntary Tender Offer Shares:

Philippine National Bank, Trust Banking Group

- 3/F PNB Financial Center, Pres. Diosdado Macapagal Blvd., Pasay City

- (02) 891-6040 local 2307 and (02) 573-4092  

- Contact Persons: Joanna Marie Aviles, Tessa Mananghaya,

Emylyn Audemard

 

PAL Voluntary Tender Offer Agent, for the PAL Voluntary Tender Offer Shares:

PNB Securities, Inc.

- 3/F PNB Financial Center, Pres. Diosdado Macapagal Blvd., Pasay City

- (02) 526-3478

- Contact Persons: Ramon Lim, Emily Rodel

 

Last September, a Reuters report said San Miguel signed a $1-billion deal to sell its PAL stake back to the LT Group. "Yes, sold," chief executive Ramon Ang said.

 

San Miguel bought its stake in the flag carrier from Tan for $500 million in 2012, and got management control of PAL and affiliate Air Philippines (now PAL Express).

 

After taking control of PAL in 2012, Ang unveiled a $10-billion program as he sought to retire old jets with wide-bodied planes to beef up long-haul flights and expand domestic services. —Joel Locsin/NB, GMA News