Singapore Airlines extends Tigerair delist offer to Jan 8

A Tigerair plane and a Singapore Airlines (SIA) plane at Changi Airport Terminal 2.
A Tigerair plane and a Singapore Airlines (SIA) plane at Changi Airport Terminal 2.PHOTO: ST FILE

SINGAPORE - Minority shareholders of Tiger Airways will have more time to consider whether to accept Singapore Airlines' (SIA) buyout offer of the budget carrier.

In a stock exchange filing on Monday, SIA said the deadline will be extended to 5.30pm on Jan 8.

SIA, which already owns 55.8 per cent of Tiger Airways, made a S$453 million takeover offer for the rest of the airline on Nov 6.

It is offering 41 cents per share in cash - 32.3 per cent higher than Tigerair's closing price of 31 cents on Nov 5.

Under the offer, Tigerair shareholders can opt to subscribe for SIA shares at $11.1043 each.

Over a week ago, the Securities Investors Association Singapore (Sias) wrote to SIA, on behalf of Tigerair minority shareholders,urging the airline to consider improving its offer, as well as to extend the Dec 28 deadline to Jan 11, in the light of the holidays.

Sias president and chief executive David Gerald told The Straits Times, that Sias welcomed the extension, and that it will give minority shareholders "more time to consider the offer carefully and make an informed decision".

Responding to calls for it to lift its offer price, SIA said in a statement last week that its offer for the budget carrier is "compelling", adding that market analysts have also recommended that shareholders accept it.

wongsy@sph.com.sg