Channel NewsAsia

Singapore Airlines raises offer price for Tiger Airways shares to 45 cents

The deadline for SIA's offer has been extended to Jan 22. SIA's CEO Goh Choon Phong says the offer price "will not be revised further".

SINGAPORE: Flagship carrier Singapore Airlines (SIA) announced on Monday (Jan 4) that it has increased the offer price for Tiger Airways shares that it does not already own, to S$0.45 per share. This final offer made to Tiger Airways shareholders values the budget airline at approximately S$1.125 billion.

In a news release, the national carrier said the new offer price is a nearly 10 per cent increase from the S$0.41 one, which is the Voluntary Conditional General Offer announced on Nov 6. This is a 45 per cent premium to Tigerair's closing price of S$0.31 the day before the takeover bid was announced.

SIA also said the closing date for its offer has been extended to 5.30pm on Jan 22. This is a second extension, after it announced a Dec 28, 2015 deadline was shifted to Jan 8.

In a filing on the Singapore Exchange, SIA also confirmed that it now controls 77.48 per cent of Tigerair as of Monday. This is an increase of the 74.5 per cent announced last week, but still short of the 90 per cent needed to delist and privatise the budget airline.

Said SIA CEO Goh Choon Phong: "Tiger Airways' Independent Financial Advisor and Tiger Airways' Independent Directors had already recommended that shareholders accept based on the initial offer price of S$0.41, which we considered to be compelling based on the significant price premium that was being offered."

He added that the new offer price will not be revised further. "We are optimistic that with this final upward revision of the offer price, those shareholders who have not already accepted the offer will consider it favourably," Mr Goh said.