MANILA, Philippines - Philippine Airlines (PAL) and budget carrier Air Philippines Corp. will not be included in the new holding company controlled by tycoon Lucio Tan.
In a disclosure to the stock exchange, Tanduay Holdings said its board of directors have approved the deferment of the acquisition of the airline business.
The original plan involved Tanduay acquiring 49.84% of PAL and 50.97% of AirPhil Express. Both airlines are now under the management of San Miguel Corp.
The Tanduay board approved the further acquisition of up to 100% equity interest in Fortune Tobacco Corp., Asia Brewery Inc., Paramount LandEquities Inc. and Saturn Holdings Inc.
"The acquisition of the additional shares from the above-named companies will be paid from the proceeds of the 5 billion share subscription that was recently approved and completed," Tanduay said.
Based on its unaudited interim combined income statement, the LT Group posted a net income of P5.7 billion for the January to September period, on P20.8 billion in revenues.
As of end September, the LT Group had total assets of P115.5 billion and liabilities of P50 billion.