Singapore Airlines offers to buy rest of Tiger Airways
SIA said it intended to privatise the carrier as it "lacks the scale and network" to effectively compete with the likes of Malaysia's AirAsia, Qantas's Jetstar unit, Indonesia's Lion Air and Philippine airline Cebu Pacific.
SIA is offering S$0.41 a share in cash for the 44.2 percent of Tiger Airways it does not already own, as well as an option to subscribe for SIA shares at S$11.10 per share.
The shares closed at S$0.31 on Thursday, while Singapore Airlines closed at S$11.15. Trading in shares of both companies was halted ahead of the announcement.
Tiger would benefit from being fully integrated into the group which includes long-haul, low-cost carrier Scoot and full-service regional airline SilkAir, SIA said. ■