Singapore Airlines launched a voluntary conditional general offer for 44.2% of the shares of Tiger Airways that it does not already own. It intends to delist and privatise the budget airline through the offer with the objective of enhanced commercial and operational synergies.
Tiger Airways shareholders can realise their investment at a compelling premium. Singapore Airlines is offering Tiger Airways shareholders the offer price of S$0.41 per Tiger Airways share in cash, as well as an option to subscribe for Singapore Airlines shares at S$11.1043 per share. This option to subscribe for Singapore Airlines shares can be exercised at any time during a 15 Market Day period to be announced after the final settlement date in respect of all the Offer Shares validly tendered.
The offer will be funded through internal cash resources.
The Offer Price values Tiger Airways at approximately S$1.02 billion. It represents:
- A premium of 32%, 35%, and 42% respectively over the last traded price, the one-month and 3-month volume weighted average prices (VWAP) of Tiger Airways shares, preceding the Offer.
- A price which exceeds the highest closing price since 16 June 2014.
- A price higher than all analysts’ price targets as published on Bloomberg between 23 October 2015 ( the date of release of Tiger Airways Group’s unaudited consolidated financial statements for the second quarter and half year ended 30 September 2015) and the date prior to the Announcement Date
The offer is conditional upon Singapore Airlines and parties acting in concert with it owning more than 90% of Tiger Airways by the close of the offer and the approval in-principle for the dealing in, listing of and quotation of the new Singapore Airlines shares to be issued in connection with the offer and the PCCS offer being obtained from Singapore Exchange Securities Trading Limited.
More details of the offer will be provided in the Offer Announcement on 6 November 2015 and will be sent to Tiger Airways shareholders soon.
