No decision made about change in Tiger Airways shareholding: SIA
By Timothy Ouyang and Azhar Khalid | Posted: 20 July 2011 1938 hrs
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SINGAPORE: Singapore Airlines (SIA) said no decision has been made about a change in its shareholding in budget carrier Tiger Airways.
SIA was responding to queries by Channel NewsAsia, amid market speculation that SIA might raise its stake in Tiger.
In Wednesday's trade, shares of Tiger Airways rose 13.5 per cent to close at S$1.135, with some 53.5 million shares changing hands.
That prompted the Singapore Exchange (SGX) to ask the carrier to explain the sharp rise in its share price and the surge in trading activity on Wednesday.
In response, Tiger said that as part of its "ongoing efforts to strengthen its financial performance and strategic position, and provide financial flexibility for its operations, it continually reviews various proposals of a business, financing or other nature".
It added that it is also approached by various parties to discuss business opportunities but "there is no assurance that any definitive or binding agreement will result from these discussions".
Tiger said that "it has not made a decision whether or not to pursue any of these initiatives" and is not aware of any particular reason for the trading activity.
As of 30 June 2011, SIA owns a 32.9 per cent stake in Tiger.
The budget carrier is currently suspended from operating domestic flights in Australia due to safety concerns.
No decision made about change in Tiger Airways shareholding SIA - Channel NewsAsia
Interesting to see if SIA will increase their shareholding in Tiger to more than 51%. Temasek has 8%, so SQ just needs to buy out Temasek and another 10% to reach that threshold.