DJ San Miguel President Expects To Sign Philippine Airlines Deal Tuesday
MANILA, Apr 03, 2012 (Dow Jones Commodities News Select via Comtex) --San Miguel Corp. (SMC.PH) and the group of billionaire Lucio Tan are scheduled to sign a deal later Tuesday that will allow San Miguel to invest in the two local carriers that Tan controls, Philippine Airlines and budget carrier Air Philippines Corp.
"Yes, there will be a signing today," San Miguel President Ramon Ang said in mobile text message when asked about a report in the Philippine Star on Tuesday that said the conglomerate will purchase of a 49% stake in PAL Holdings Inc. (PAL.PH) for 500 million to get a foothold in Philippine Airlines.
Tan owns 97.7% of PAL Holdings, which in turn holds 84.6% of Philippine Airlines.
Separately, San Miguel told the Philippine Stock Exchange the company remains in talks with the controlling shareholders of Philippine Airlines and Air Philippines "with respect to the possible investment by the company in PAL and Air Philippines."
San Miguel, the country's largest food and beverage conglomerate, has diversified into mining, power generation, infrastructure development, toll road operation, and oil refining to increase future investment returns.
-By Cris Larano, Dow Jones Newswires; 632-848-5051; email@example.com
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