SIA buys 7% of Tiger from Temasek for $49m to raise stake to 40%

Singapore

SINGAPORE Airlines (SIA) has acquired a 7.3 per cent stake in Tiger Airways from Temasek Holdings, taking its stake in the budget carrier to 40 per cent from 32.7 per cent.

In a release to the Singapore Exchange yesterday, SIA said it had acquired 72.33 million shares in Tiger from Dahlia and 1,800 shares from Aranda for S$49.034 million, funded by the carrier's internal cash resources. Both Dahlia and Aranda are indirect wholly-owned subsidiaries of Temasek Holdings.

The consideration was based on a price of S$0.67788 per share, which represents a premium of 20 per cent over the volume-weighted average prices of Tiger shares traded on SGX for the 20 trading days up to a…