Ayala Sells Airline at $32 Million
7 October 2024
Low Cost Carrier Cebu Pacific (CEB) has signed agreement with ALI Capital Corp., a wholly owned subsidiary of Ayala Land Inc., to acquire full ownership of boutique airline AirSWIFT Transport Inc. for a transaction valued at P1.75 billion (US$32,250,000 million) through share purchase deal.
According to PSE disclosures, ALI stated the agreement was reached through arm’s-length negotiations, taking into consideration AirSWIFT’s aircraft lease payments, manila airport slot allocations, and rights to land at El Nido' private airport.
The share swap deal involves a one-time cash payment that will be held in escrow at Bank of the Philippine Islands, to be released once all post-closing conditions, such as approval of the Competition Commission, Civil Aeronautics Board, Manila International Airport Authority, and the Civil Aviation Authority has been met, and share price adjustments outlined in the share purchase agreement (SPA) are fulfilled.
CEB said there will be no changes in Airswift flight schedule and services, as it will simply become another airline subsidiary of Cebu Pacific, like Cebgo, bought from Southeast Asia Airlines (SEAIR).
"With this transaction, we are hopeful the expertise of Cebu Pacific will bring lower cost options and greater accessibilty to El Nido", ALI Capital President Alfonso Javier Reyes said in a statement.
Airswift operates a pair of ATR 42-500 and thre ATR72-600 turboprop aircraft.
Cebu Pacific said the acquisition will widen their network and improve connectivity for both local and foreign travelers, helping grow businesses and local communities in key tourist hotspots.
“We are excited to play our part in increasing accessibility to local destinations that have high potential and are world-renowned for having some of the best beaches in the world," said Cebu Pacific President and Chief Commercial Officer Xander Lao.
Cebu Pacific and Ayala land previously confirmed their discussion on the sale of Airswift to Cebu Pacific as early as July 2024.
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