San Miguel prefers ‘profitable, famous’ partners in PAL

MANILA, Philippines – Ramon Ang, president of legacy carrier Philippine Airlines (PAL), said he would prefer a profitable and well-known airline as a strategic partner should majority shareholder, tycoon Lucio Tan, decide to sell his 51% share in the airline.  

Ang reiterated the June 10 stock exchange disclosures of San Miguel Corp that Tan had received a good offer from a group to buy the majority stake in PAL that the tycoon currently holds. Ang is also the chief operating officer of San Miguel Corp, which owns the 49% minority but controllling stake in PAL.

At a press briefing after San Miguel’s stockholders meeting on Tuesday, June 11, Ang said he has not been informed of who the interested group is. However, he stressed that he prefers a strategic partner who will help the airline grow. 

When asked to describe what group would be ideal partners, he replied, “famous and profitable airline.”

Another airline

Ang hinted that the group the Tans are in talks with may be another airline. 

“Mr. Tan group received an offer from somebody…Of course they did no disclose to me who or what. Hypothetically, if the offerer is [from] an airline company — and a good airline company — then we should have no objection. It would be ok with us,” said Ang. 

San Miguel has said the Tan group is “seriously” looking into selling his PAL shares. 

“We received an advice today that the group of Dr. Lucio Tan was approached by investors interested to acquire its 51% stake in PAL Holdings, Inc. and Philippine Airlines, Inc. The Lucio Tan group is seriously looking into the proposal,” San Miguel said in a June 11 disclosure to the stock exchange dated Monday, June 10.

Ang said this decision has not come from any disagreements among the current partners.

“There is no disagreements with the two groups, they just received a good offer and they’re evaluating it,” Ang said.

In a disclosure on Monday, June 10, San Miguel announced this is would not be buying Tan’s remaining stakes in PAL.

“We advise that the Company (San Miguel) is not acquiring the 51% majority interest of the LT Group in PAL and PAL Holdings Inc. We have been advised by the LT Group that the latter is in talks with a group of investors who have expressed an interest to purchase such majority interest of the LT Group in PAL and PH respectively,” San Miguel wrote.

Not ruling out San Miguel 

However, during the stockholders meeting on Tuesday, Ang did not rule out buying Lucio Tan’s majority share of PAL.

Ang said he would be willing to buy the remaining share if he is not satisfied with the new partner.

“If the offerer is somebody which we think would not be able to help us or help promote the business, then we can think of buying it and looking for another replacement,” said Ang.

San Miguel enters PAL

San Miguel acquired a 49% minority but controlling stake  in the airline last April 2012, following financial and labor troubles that hounded Asia’s first commercial airline for years.

Under San Miguel Corp, the Philippines’ biggest business group, PAL has embarked on a massive refleeting program aimed at acquiring 100 new aircraft to replace its existing fleet, as well as partnership deals, including a code-share agreement with newly formed Cambodia Airlines.

Trading of PAL Holdings remains suspended after it failed to meet the Philippine Stock Exchanges’ requirement of at least 10% public ownership by December 2012. – Rappler.com