PAL calls off stockholders' meeting amid buyout talks
MANILA, Philippines – PAL Holdings Inc. has postponed its annual stockholders' meeting scheduled in September amid discussions of a possible buyout between Lucio Tan and San Miguel Corp.
In a disclosure to the stock exchange, PAL Holdings said the postponement of the annual meeting, originally scheduled for September 30, was agreed to by both Tan’s group and San Miguel.
“In light of the ongoing discussions between the San Miguel Corp. Group and the Lucio Tan Group with respect to their indirect equity stakes in PAL Holdings, Inc, Philippine Airlines, Inc. and Air Philippines Corporation, both parties have agreed to recommend to postpone the Annual Stockholders’ Meeting, which under the By-Laws, should be held on the last working day of September,” the parent firm of national flag carrier Philippine Airlines Inc. said Tuesday.
The recommendation to postpone the meeting was approved by the Board of PAL Holdings on August 14, it added.
Tan’s group is considering taking back full control of PAL by buying back the 49 percent stake currently owned by San Miguel.
San Miguel president and chief operating officer Ramon Ang said Tan already made a formal offer to buy back the shares, but clarified that negotiations are still ongoing.
Ang also serves as PAL president and COO while Tan sits as chairman.
Since San Miguel bought into PAL in 2012, the airline has embarked on a fleet renewal program to acquire a total of 100 brand new aircraft.
The Tan group is reportedly raising funds close to $1 billion to buy back San Miguel’s shares and to pay the advances for the brand new aircraft acquisitions.
According to a source, buyout negotiations is likely to be completed in the next few weeks, with the Tan group gaining full control of PAL as early as August 27.