Tiger Airways Holdings Limited this week completed the transaction to acquire a 40% stake in Southeast Asian Airlines Inc (“SEAir”) for US$2.5 million.
The purchase price of US$7 million, which was agreed with the sellers, has been reduced by the liabilities determined in a due diligence review. The investment will be held through Tiger’s wholly owned subsidiary Roar Aviation II Pte. Ltd.
“Together with our Philippine business partners, our immediate focus will be on scaling up the business through network expansion, building a strong customer base, and establishing the airline’s brand presence,” said Tiger Group Chief Executive Officer Koay Peng Yen, “The Philippines has tremendous growth potential and we welcome the opportunity to be at the heart of it.”
The remaining Filipino shareholders, including individual investors, collectively own a 60% share of SEAir.
The investment in SEAir is Tiger’s second joint venture. Tiger acquired a 33% stake in Mandala Airlines in Indonesia in January 2012. The acquisitions are in line with Tiger’s strategy to expand and develop its business in the region.
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