AirAsia drops plan to buy Indonesia's Tigerair Mandala
Published on Jun 13, 2014 1:06 PM
JAKARTA (Reuters) - Malaysia's AirAsia has dropped a plan to acquire Indonesian low-cost carrier Tigerair Mandala and will instead grow its business organically in Southeast Asia's biggest economy with planned investment of US$300 million (S$375 million) a year.
"We would like to confirm that we evaluated to purchase Mandala. And after a long search have decided not to pursue this transaction," AirAsia Group Chief Executive Tony Fernandes said in an email to Reuters on Friday.
The shelving of the planned acquisition follows a similar pullout from an Indonesian carrier. Citilink has ended talks to buy Mandala, two sources familiar with the discussions told Reuters on Thursday.
Singapore-based Tiger Airways Holdings is looking to sell its 35.8 per cent in Mandala to cut its overseas exposure and focus on returning its flagship Tigerair business to profitability.
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