PAL eyes to close Cambodia Air deal by Oct

MANILA, Philippines — Philippine Airlines (PAL) of tycoon Lucio Tan and conglomerate San Miguel Corp. said the target completion date of a deal giving it a stake in a Cambodian airline was moved to October 15.

Ma. Cecilia Pesayco, assistant corporate secretary of PAL’s parent PAL Holdings Inc., confirmed the new closing date in a disclosure to the Philippine Stock Exchange Monday, August 12.

PAL is buying a 49% stake worth $10 million in Cambodia Airlines Co. Ltd., which is owned by Inter Logistics (Cambodia) Co. Ltd. Inter Logistics is part of the Royal Group of Companies (RGC), which is led by Neak Oknha Kith Meng.

PAL was supposed to make a 10% downpayment for the stake upon completion of closing conditions last July 15. The $9 million balance was to be paid upon the call of the board of Cambodia Air.

The closing conditions included the registration of PAL’s investment in Cambodia Air and the procurement by Cambodia Air of all the necessary franchises, permits and licenses to operate and maintain an airline company.

The investment in Cambodia Air, PAL’s first international venture, was approved by PAL’s board of directors on April 25.

Cambodia’s new flag carrier

Cambodia Air would rival the Cambodia government-controlled Cambodia Angkor Air held in partnership with Vietnam Airlines.

PAL said it would infuse $1.5 billion to equip Cambodia Air with a fleet of 16 to 22 aircraft, of which 8 to 10 would be deployed in the first year of operations.

PAL president Ramon Ang said the airline venture with RGC would boost PAL’s revenues by $300 million to $400 million. – Rappler.com