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Cebu Pacific has acquired boutique airline AirSWIFT Transport, Inc. for P1.75 billion
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Cebu Pacific said it officially signed a share purchase agreement with ALI Capital Corp. for the acquisition of 100% of AirSWIFT
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The amount will be a one-time payment but CEB will place the purchase price in escrow
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Funds will only be released after all post-closing obligations and the post-closing adjustments are met
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Following the acquisition, Cebu Pacific said there will be no change in AirSWIFT’s flight schedules and service
Cebu Pacific (CEB) has acquired boutique airline AirSWIFT Transport, Inc. for P1.75 billion.
In a regulatory disclosure on October 7, Cebu Pacific said it officially signed a share purchase agreement with ALI Capital Corp.—a wholly owned subsidiary of property developer Ayala Land, Inc. (ALI)—for the acquisition of 100% of AirSWIFT.
The airline said the transaction was approved by its Board of Directors on October 7, “marking a significant step in the airline’s continued expansion of services and network reach.”
“This strategic decision allows both organizations to focus on their respective core businesses, enhancing operational focus and efficiency, and marks an exciting new chapter for both AirSWIFT and CEB,” it added.
The P1.75 billion, comprised of payment for outstanding shares and shareholder advances, was arrived at “after arm’s length negotiations on a willing-buyer, willing-seller basis and took into account, inter alia (among other things), the net asset value and financial performance of AirSWIFT.”
The amount will be a one-time payment but CEB will place the sum in escrow. The funds will only be released after all post-closing obligations and the post-closing adjustments are met, as detailed in the sales purchase agreement.
Cebu Pacific noted that completion of the acquisition is subject to the satisfaction (or waiver) of conditions precedent, which are customary conditions for transactions of this type, including all necessary approvals from relevant government bodies, statutory bodies, authorities, commissions, tribunals, agencies or entities and as set out in the agreement.
ALI vice president and head of leasing and hospitality Mariana Zobel de Ayala earlier said they were “entertaining several” airline operators for the sale of AirSWIFT as they hope to continue focusing on their core competence, which is land development.
Cebu Pacific also earlier said it is “always on the lookout for opportunities to grow and expand its network, including partnerships with other parties.”
Following the acquisition, Cebu Pacific said there will be no change in AirSWIFT’s flight schedules and service.
Cebu Pacific said the acquisition of AirSWIFT “is expected to have a material impact on the net assets and earnings per share of CEB.”
AirSWIFT was founded in 2002 as Island Transvoyager and was acquired by Ayala in 2012. In October 2015, Island Transvoyager rebranded as AirSWIFT.
AirSWIFT currently caters to the domestic leisure travel market, operating flights from Manila and Clark to El Nido in northern Palawan, and from El Nido to other major tourist destinations in the country, including Cebu, Boracay, Coron and Bohol.
