Singapore’s flagship carrier, Singapore Airlines (SIA), has announced that it will take steps to delist Singapore-headquartered budget airline Tiger Airways as SIA now holds more than 90 percent stake in Tiger Airways.
The SGX-ST Listing Manual requires a company to ensure that at least 10 percent of the total number of issued shares are held in public hands.
SIA does not intend to restore the minimum 10 percent free float or to preserve the listing status of Tiger Airways.
SIA launched a voluntary general offer for the Tiger Airways shares that it does not already own on 6 November 2015 (the Offer) with the intention being to delist and
privatise Tiger Airways, enabling a full integration into the SIA Group.
The 90 percent level was crossed on February 5. The Offer closes at 5:30pm on 19 February 2016 (or such later date as may be announced from time to time by or on behalf of SIA), SIA said in a news release.
Tiger Airways Shares To Be Suspended – Singapore Airlines
After the closing date of the Offer, trading in Tiger Airways shares on the SGX-ST will
be suspended by SGX due to the loss of the minimum 10 percent free float.
Tiger Airways shareholders who have not yet accepted the Offer are still able to tender their acceptances up to the closing date.
In a previous statement, SIA said shareholders who accept the offer will be paid S$0.45 per Tigerair share and have the option to subscribe for SIA shares at S$11.1043 per share within 10 days.
Tiger Airways Singapore Pte Ltd, operating as Tigerair, is a budget airline headquartered in Singapore. It operates services to regional destinations in Southeast Asia, China and India from its main base at Singapore Changi Airport.
Originally founded as an independent airline in 2003, it was floated on the Singapore Stock Exchange under the Tiger Airways Holdings banner in 2010.
In October 2014, parent company Tiger Airways Holdings became a subsidiary of the SIA Group, who took a 56 percent ownership stake. – BusinessNewsAsia.com