SINGAPORE (Dow Jones)--Singapore-listed budget carrier Tiger Airways Holdings Ltd. (J7X.SG) Friday said it has signed a deal to buy a 33% equity stake in Indonesia's PT Mandala Airlines.
Tiger Airways' investment in Mandala will be held through its wholly owned subsidiary in Singapore, Roar Aviation Pte. Ltd., it said in a statement to Singapore Exchange, without giving financial details of the deal.
Mandala is currently undergoing a financial restructuring process. The largest shareholder in the restructured Mandala will be the Saratoga group, which will hold a 51.0% stake. The remaining 16.0% will be held by the previous shareholders and creditors of Mandala, according to the statement.
The next stage of the process for completion of the proposed investment involves satisfying certain conditions, including regulatory approvals. The process is expected to be completed in about 90 days, after which flight operations are expected to start, it said.
The restructured airline will adopt the Tiger Airways business model, and plans to offer low-fare travel to international and domestic Indonesian destinations within a five-hour flying radius and operate Airbus A320 aircraft, it added.
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