SINGAPORE: Flagship carrier Singapore Airlines (SIA) has crossed the 90 per cent threshold needed to delist Tiger Airways.
In a news release on Friday (Feb 5), SIA said it will now take steps to delist the budget airline. Under Singapore Exchange listing rules, a company must ensure that at least 10 per cent of the total number of issued shares are held in public hands. "SIA does not intend to restore the minimum 10 per cent free float or to preserve the listing status of Tiger Airways," the airline said.
SIA launched a voluntary general offer for the Tiger Airways shares that it does not already own on Nov 6, 2015 with the intention to privatise Tiger Airways, enabling a full integration into the SIA Group.
The offer closes at 5:30pm on Feb 19, SIA said. After the closing date of the offer, trading in Tiger Airways shares on the SGX-ST will be suspended by SGX due to the loss of the minimum 10 per cent free float.
Tiger Airways shareholders who have not yet accepted the offer are still able to tender their acceptances up to the closing date. Shareholders who accept the offer will be paid S$0.45 per Tigerair share and have the option to subscribe for SIA shares at S$11.1043 per share within 10 days, SIA said earlier.