From SMC to SM?

Lucio Tan Group Buys Out SMC

9 September 2014

The Lucio Tan Group has signed on Monday a $1.3 billion deal to buy back in cash the 49-percent stake in Philippine Airlines (PAL) from conglomerate San Miguel Corporation. Payment is expected within this week.

The buy back deal is financed mainly by Banco de Oro (BDO) and China Banking Corporation (CBC), the banking arm of the Shoe Mart Group of companies (SM Group) belonging to family patriarch Henry Sy. 

The syndicated loan amounts to $850 million secured from BDO, China Banking, Philippine National Bank (PNB) and Asia United Bank (AUB). The rest of the buy back money amounting to $400 million will come from the Lucio Tan Group of Companies.

The buy back deal covers the $500 million capital infusion at PAL in exchange for SMC’s 49-percent stake in PAL Holdings as well as cash advances to Airbus S.A. to the tune of $700 million made by San Miguel for the flag carrier’s A330, and A321 aircraft orders for its refleeting program.

No comments:

Post a Comment