ANA to complete $95M investment in PAL by March
Japan’s largest airline group ANA Holdings expects to close its deal with tycoon Lucio Tan’s Philippine Airlines next month.
“The parties are targeting to close the transaction within the period from Feb.28 to March 15, 2019, subject to completion of their respective internal procedures,” documents filed with the Philippine Stock Exchange said.
Under the agreement, ANA will acquire 1.1 billion shares or 9.5 percent of PAL Holdings for $95 million.
The transaction will be crossed in the facilities of the PSE via a special block sale.
Proceeds from the share sale will be used to support PAL’s operations and expansion.
ANA will take a seat on the nine-man board of PAL Holdings at the latter’s stockholders’ meeting in May. The flag carrier is expected to benefit from the business knowledge and experience of the ANA representative.
Upon completion of the transaction, the foreign ownership level of PAL Holdings will increase from 8.77 percent to 18.27 percent. The public float will remain at the current level of 10.32%.