One of the Philippines leading business tycoon Lucio Tan, has reportedly sold his remaining shares in the country’s flagship air carrier, Philipppine Air Lines which leaves conglomerate San Miguel Corp. full control.
According to a news report from Philippine Daily Inquirer, San Miguel bought Lucio Tan’s 51% stake of the Philippine airlines, with the deal reportedly worth at $500 million.
Before San Miguel’s acquisition of Lucio Tan’s share in PAL, the conglomerate San Miguel already holds 49% stake of the airline company, which San Miguel bought last year valued also at around $500 million.
With the reported take over of San Miguel with the country’s flag carrier airlines, it will result in more capital influx to the company which already suffered from high fuel costs and competition from aggressive budget carriers. The company have already bought 54 new Airbus jets to replace PAL’s ageing fleet.
