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Singapore Airlines not considering full takeover bid for Tiger Airways: CEO
[SINGAPORE] Singapore Airlines Ltd (SIA) is not currently considering a full takeover of partly-owned low-cost carrier Tiger Airways, even though it is raising its stake in the firm, the parent's chief executive Goh Choon Phong said on Friday.
SIA said in October that it would raise its stake in Tiger to about 55 per cent from 40 per cent. It said it would also buy up to S$140 million (US$110 million) of a S$234 million rights issue, taking its stake as high as 71 per cent. "At this time, a takeover offer is not under consideration," Goh said at a briefing for analysts, a day after SIA reported its second-quarter results.
Goh said SIA's focus is on doing what is necessary for Tiger to return to financial health, and ensuring it falls in line with the parent's strategy of having a strong presence in the low-fare segment via Tiger, as well as medium-to-long haul low-cost unit Scoot.
Tiger's shares have plunged 40 per cent over the past three months. The carrier has booked a loss in each of the past three years, including a record S$223 million in the year ended March.
Including its planned rights issue, Tiger will have raised about S$900 million in less than five years.