SINGAPORE Airlines (SIA) on Friday launched a voluntary conditional general offer for all the shares of Tiger Airways that it does not already own, with the aim of delisting and privatising the budget carrier.
SIA currently owns 55.8 per cent of Tiger Airways, valued at approximately S$1.02 billion.
"The offer provides Tiger Airways shareholders an opportunity to realise their investment in Tiger Airways at a compelling premium," said SIA in a press release.
It is offering Tiger Airways shareholders the offer price of S$0.41 per Tiger Airways share in cash, as well as an option to subscribe for SIA shares at S$11.1043 per SIA share.
The offer price represents a premium of 32 per cent, 35 per cent and 42 per cent respectively over the last traded price, the one-month and three-month volume-weighted average prices of Tiger Airways shares, preceding the offer.
Said SIA CEO Goh Choon Phong: "We believe our offer to Tiger Airways shareholders is compelling as a significant premium is being offered and hope that it will be considered favourably. We are confident that full integration of Tiger Airways into the SIA Group will result in enhanced operational and commercial synergies, ensuring Tiger Airways' long-term success.
"Tiger Airways shareholders, who have also provided support through the airline's challenging times, will also have an opportunity to share in its future success through the share option component of the Offer, which enables them to become investors in the larger SIA Group."
The option to subscribe for SIA shares is exercisable at any time during a 15 market day period, which will commence on a date to be announced by SIA.
The offer will be funded through internal cash resources.