San Miguel Corp. (SMC) has agreed to a $1-billion deal to sell its 49% stake in Philippine Airlines (PAL) back to the group.
SMC CEO Ramon Ang confirmed earlier reports that the conglomerate had signed the deal.
The deal covers SMC’s indirectly held shares in the airline, equal to nearly half of the carrier, plus loans and advances. The agreement is subject to conditions set by SMC, including delivery of the total payment amount of $1 billion in a week.
SMC owns 49% of the parent of listed holding company, PAL Holdings Inc., that in turn controls around 90% of the airline.
The conglomerate bought its stake in the flag carrier from Tan for $500 million in 2012, giving the conglomerate management control of PAL and affiliate Air Philippines.
After complying with the conditions of the buyout, Tan’s group could take back management control of Asia’s oldest airline as early as next month.
Tan currently serves as chairman of PAL, but SMC’s Ang oversees the day-to-day operations as PAL president and COO.
Photo from PAL’s Facebook account.
