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| SMC buys out Lucio Tan from PAL Holdings for $1 billion |
In a deal valued at one billion us dollars, Lucio Tan has sold his remaining 51% equity stake of PAL Holdings to the Philippines largest conglomerate San Miguel Corporation.
The deal includes the sale of Air Philippines which carries the brand of PAL Express.
Last year, San Miguel paid US$ 500 million to Tan for a 49-percent stake in PAL Holdings in April 2012 for management control of both Philippine Airlines and Low Cost Carrier Air Philippines.
Last year, San Miguel paid US$ 500 million to Tan for a 49-percent stake in PAL Holdings in April 2012 for management control of both Philippine Airlines and Low Cost Carrier Air Philippines.
The airline has since embarked on an aggressive expansion to its route network riding on the massive equity infusion by its stockholders as it launched US$ 7 billion refleeting program comprising 54 wide and narrow bodied aircraft from Airbus.
PAL has since introduce new flights to Canada, China, Australia, and the Middle East.
San Miguel recently paid US$ 161 million to the Philippine Government to develop and operate expressway going to Ninoy Aquino International Airport, hub of Philippine Airlines and PAL Express. It also paid US $10 million for a 49-percent stake in a startup Cambodian airline.
