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Tiger Airways purchases 40% stake in Southeast Asian Airlines

June 5, 2012

SINGAPORE: Tiger Airways Holdings Ltd has finalised a sale and purchase agreement to acquire a 40% stake in Southeast Asian Airlines (SEAir), Inc.

This stake will be acquired from existing foreign shareholders at US$7 million, less liabilities, to be confirmed in a due diligence review.

The investment will be held through Tiger’s wholly-owned subsidiary, Roar Aviation II Pte Ltd.

Established in 1995, SEAir is a commercial airline based in the Philippines.

Commenting on the acquisition, Tiger’s CEO Chin Yau Seng said: “We are pleased to welcome a new cub to our family and look forward to nurturing its growth with our Filipino business partners.”

He said the investment in SEAir was in line with Tiger’s strategy to develop the business into a pan-Asian one.

“It is one that will enable us to leverage the strength of our Singapore base and scale up the size of our business across the region,” he added.

The SEAir investment is Tiger’s second such joint venture in Asia.

Tiger acquired a 33% in Mandala Airlines in Indonesia in January 2012.

Chin said Tiger will continue to seek opportunities to extend its reach in the Asia Pacific.
“Asia is one of the fastest growing areas in air travel and we intend to play a major role in driving that growth.

“The Philippines is a large country with more than 7,000 islands and a population of over 90 million, excluding the 11 million working and living abroad. There is enormous potential to develop the domestic and international air travel,” he added.

SEAir currently operates two Airbus A319 aircraft leased from Tiger under the Tiger Partner Airline programme.

In addition, there are plans to expand the fleet to five aircraft within this financial year with the addition of three A320 aircraft.

SEAir will be introducing new routes to the network, details of which will be announced at an appropriate time. The airline will adopt Tiger’s business model.

This includes offering attractive fares to international and domestic destinations within a five-hour flying radius from the Philippines.

SEAir operates domestic flights (within the Philippines) and international flights to destinations such as Singapore, Hong Kong, Bangkok and Kota Kinabalu.

The completion of the investment in SEAir is subject to the required approvals being obtained.


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