PSE confirms Tan shopping for buyer for PAL stake

MANILA, Philippines - Tycoon Lucio Tan is in talks with interested investors for the sale of its majority stake in the flag carrier.

“We received an advice today that the group of Dr. Lucio Tan was approached by investors interested to acquire its 51-percent stake in PAL Holdings, Inc. and Philippine Airlines Inc.,” Cecilia Pesayco, assistant corporate secretary of PAL Holdings, said in a disclosure to the Philippine Stock Exchange yesterday.

“The Lucio Tan group is seriously looking into the proposal,” she said further.

The Lucio Tan group owns the 51-percent stake of PAL while the rest or 49 percent is held by conglomerate San Miguel Corp. (SMC).

In April last year, SMC infused $500 million for the purchase of a 49-percent equity interest in Trustmark Holdings Corp.

Trustmark owns 97.71 percent of PAL Holdings, which owns 84.67 percent of PAL through PR Holdings Inc.

The flag carrier has embarked on a refleeting program since SMC’s entry.

The airline aims to acquire 100 new aircraft.

It expects to save as much $400 million from fuel and maintenance costs each year as part of the refleeting program.

Earlier, the LT Group said PAL would not be consolidated into the listed umbrella firm of the Tan family.

This, as the group intends to focus on being a consumer-related conglomerate through units Asia Brewery Inc., Tanduay Distillers Inc.,

Eton Properties Philippines Inc., Philippine National Bank and tobacco firm PMFTC Inc.

PAL Holdings trimmed its losses by 24 percent to P2.74 billion in the first nine months of its fiscal year ending March from P3.59 billion as total revenues climbed by 2.4 percent to P55.68 billion from P54.38 billion due to higher revenues from the passenger and cargo businesses.