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PAL sets new closing date for investment in Cambodia Airlines

The deal between national flag carrier Philippine Airlines (PAL) and Royal Group of Cambodia (RCG) to form Cambodia Airlines Co.  Ltd. is set to be completed within the next two months.
This was according to Ma. Cecilia Pesayco, assistant corporate secretary of PAL’s parent firm PAL Holdings Inc., who said the closing date of the completion of the joint venture with RCG’s Inter Logistics (Cambodia) Co. Ltd. (ILC) has been moved to Oct. 15—three months longer than the July 15 original closing date target.
“We received today the notice from PAL informing us that the closing date for the completion of PAL’s joint venture with ILC has been moved to October 15,” Pesayco told the Philippine Stock Exchange (PSE) on Monday.
PAL, jointly owned by taipan Lucio Tan and diversified conglomerate San Miguel Corp. (SMC), is pumping in $10 million worth of equity for a 49 percent stake in Cambodia Airlines that is 100 percent owned by Inter Logistics (Cambodia) Co. Ltd.

ILC is 100 percent owned by RGC chair Neak Oknha Kith Meng.

PAL’s board of directors approved the investment in Cambodia Air last April 25.

Last May, PAL president and chief operating officer Ramon Ang went to Phnom Penh to sign the joint venture agreement with Kith Ming formalizing PAL’s first international airline venture.
PAL is supposed to make a downpayment of 10 percent or $1 million of the total acquisition cost on the completion of closing conditions targeted last July 15, while the balance of $9 million would be paid upon the call of the board of Cambodia Air. — KBK, GMA News