LT Group: PAL 'not strategic'
MANILA, Philippines - The holding firm of Lucio Tan has made up its mind: it is not taking "non-core" Philippine Airlines (PAL) under its wing.
"PAL is not strategic to our long-term plan," LT Group Inc. President Michael Tan, son of the tycoon, told reporters following the company's annual stockholders' meeting on Wednesday, June 19.
The Tan family, through another firm, PAL Holdings Inc., owns a 51% stake in the legacy carrier.
The younger Tan said PAL Holdings is in talks with several investors who are interested to acquire the stake.
"We're just waiting," he said. "If there's a good offer… it's non-core anyway."
Early this month, the Tan family announced they would no longer infuse PAL into the holding firm, which aims to focus on "consumer-related" businesses.
LT Group is involved in tobacco and beer and liquor manufacturing through Fortune Tobacco Corp., Asia Brewery Inc. and Tanduay Distillers; real estate through Eton Properties Philippines Inc.; and banking through Philippine National Bank.
The younger Tan told stockholders the company's long-term plan was to focus on these businesses, expand their distribution networks, and realize potential synergies among them.
He said any new businesses that the group would add in its portfolio would have to be "complementary to core strengths."
PAL Holdings and diversified conglomerate San Miguel Corp. jointly own PAL.
If the Tan group sells its PAL stake, San Miguel president Ramon Ang said they hope it would be to the ideal partner - a "famous and profitable airline." - with a report from Ramon Calzado/Rappler.com