San Miguel Corp. (SMC) is in talks with tycoon Lucio Tan to aid Philippine Airlines in its re-fleeting and modernization plans, but the airline denied a possible investment by the diversifying conglomerate in the flag carrier.
In a disclosure to the Philippine Stock Exchange, SMC said the company was invited by Tan,
the controlling shareholder of PAL Holdings Inc., but both parties have yet to reach a deal.
“In the event a definitive agreement is concluded, an appropriate disclosure shall be made to the Exchange,” said Ferdinand Constantino, SMC corporate information officer.
Ramon Ang, SMC president and chief operating officer, confirmed in a text message the company was in talks with PAL Holdings, but he declined to provide details.
But PAL Holdings Inc., the flag-carrier’s listed operator, ruled out a possible buy-in by SMC.
“There is presently no discussion on possible investment by San Miguel Corp. in PAL Holdings Inc.,” Susan Lee, PAL Holdings chief finance officer, said in a disclosure.
Reports of a buy-in fuelled a rally in SMC and PAL Holdings shares. The conglomerate’s shares rose P0.60, or 0.51 percent to P117.50, while the carrier’s shares gained P0.06, or 0.86 percent to P7.03. Citing a news report, SMC said it had signed on December 23 an agreement allowing it to do a due diligence on PAL until January 31.
Beleaguered by labor disputes, the airline is undergoing a spin-off program, which seeks to restructure and make the carrier leaner and more competitive in the long run.
Hong Kong-based First Pacific Co. Ltd. led by Manuel Pangilinan was initially rumored to be eyeing PAL Holdings. In October, Pangilinan denied he was looking to invest in the carrier.
SMC is shelling out $300 million to modernize the Caticlan Airport, the gateway to top tourist destination Boracay Island. SMC had expressed its intention to bid in other public-private partnership airport contracts for Palawan, Bohol and the Caraga area in Mindanao.
Its foray into new businesses of oil refining and power have supported the steady growth in its traditional food and beverage businesses, resulting in a 143-percent year on year increase in consolidated revenues to P393.44 billion in the first nine months of the year. At end-September, SMC’s net income however fell 6 percent to P11.9 billion from the P12.7 billion last year in the absence of a one-time gain from last year’s consolidation of its power generation interests in SMC Global Power Holdings Corp.
Ang expects favorable business conditions for the conglomerate next year, targeting a double-digit growth in earnings and revenues.
PAL said it would most likely book a loss in the third quarter of its fiscal year ending March 2012 because of the airline’s ground workers’ strike and skyrocketing jet fuel costs.
In a disclosure to the Philippine Stock Exchange, SMC said the company was invited by Tan,
the controlling shareholder of PAL Holdings Inc., but both parties have yet to reach a deal.
“In the event a definitive agreement is concluded, an appropriate disclosure shall be made to the Exchange,” said Ferdinand Constantino, SMC corporate information officer.
Ramon Ang, SMC president and chief operating officer, confirmed in a text message the company was in talks with PAL Holdings, but he declined to provide details.
But PAL Holdings Inc., the flag-carrier’s listed operator, ruled out a possible buy-in by SMC.
“There is presently no discussion on possible investment by San Miguel Corp. in PAL Holdings Inc.,” Susan Lee, PAL Holdings chief finance officer, said in a disclosure.
Reports of a buy-in fuelled a rally in SMC and PAL Holdings shares. The conglomerate’s shares rose P0.60, or 0.51 percent to P117.50, while the carrier’s shares gained P0.06, or 0.86 percent to P7.03. Citing a news report, SMC said it had signed on December 23 an agreement allowing it to do a due diligence on PAL until January 31.
Beleaguered by labor disputes, the airline is undergoing a spin-off program, which seeks to restructure and make the carrier leaner and more competitive in the long run.
Hong Kong-based First Pacific Co. Ltd. led by Manuel Pangilinan was initially rumored to be eyeing PAL Holdings. In October, Pangilinan denied he was looking to invest in the carrier.
SMC is shelling out $300 million to modernize the Caticlan Airport, the gateway to top tourist destination Boracay Island. SMC had expressed its intention to bid in other public-private partnership airport contracts for Palawan, Bohol and the Caraga area in Mindanao.
Its foray into new businesses of oil refining and power have supported the steady growth in its traditional food and beverage businesses, resulting in a 143-percent year on year increase in consolidated revenues to P393.44 billion in the first nine months of the year. At end-September, SMC’s net income however fell 6 percent to P11.9 billion from the P12.7 billion last year in the absence of a one-time gain from last year’s consolidation of its power generation interests in SMC Global Power Holdings Corp.
Ang expects favorable business conditions for the conglomerate next year, targeting a double-digit growth in earnings and revenues.
PAL said it would most likely book a loss in the third quarter of its fiscal year ending March 2012 because of the airline’s ground workers’ strike and skyrocketing jet fuel costs.
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