Seair's new tail

The Tiger Onslaught in the Philippines

March 25, 2013

Tiger Airways Holdings is raising stake in the budget airline wars as it prepares war chest for Indonesia and Philippine operations costing US$236 million.

The low cost carrier subsidiary of Singapore Airlines is awaiting regulatory approval to rebrand SEAIR as Tiger Airways Philippines in the second quarter of 2013.

Tiger Airways Philippines is expected to make its debut on July 10.

“The proceeds from the fundraising exercise will allow us to fortify our balance sheet and be well-positioned to grow the Tiger franchise in Asia,” the carrier’s Chief Executive Officer Koay Peng Yen said in the statement.

Major shareholder Singapore Airlines, which holds a 32.7% stake in Tiger, has agreed to take up its entitlement to the rights shares and convertible securities. It will also subscribe to shares and convertible securities not bought by other shareholders, provided its shareholding does not rise above 49.9%.

Temasek-owned Dahlia Investments, with a 7.3% stake in Tiger, has also agreed to subscribe to its entitlements.