Flag carrier Philippine Airlines (PAL) is buying a 49 percent
equity stake in Cambodia Airlines Co. Ltd. for $10 million, the joint
venture between taipan Lucio Tan and diversified conglomerate San Miguel
Corp. (SMC) announced on Monday.
PAL would make a 10 percent down payment or $1 million upon completion
of the closing conditions on July 15, with the balance of $9 million
payable upon the call of the board of Cambodia Air, PAL Holdings Inc.
assistant corporate secretary Ma. Cecilia Pesayco informed the
Philippine Stock Exchange (PSE).
The closing
conditions cover the registration of PAL's investment in Cambodia Air
and, also on the part of the Phnom Penh-based company, the procurement
of franchises, permits, and licenses to operate and maintain an airline.
Directors of PAL approved the transactions last April 25, Pesayco
noted. Early last month, PAL president and chief operating officer Ramon
S. Ang went to Phnom Penh to sign the joint venture agreement with Neak
Oknha Kith Meng.
Cambodia Air is 100 percent
owned by Inter Logistics (Cambodia) Co. Ltd., which in turn is 100
percent owned by the Royal Group of Cambodia (RGC) chair Neak Oknha Kith
Meng.
Ang earlier noted PAL would deploy 16 to
22 aircraft worth $1.5 billion for Cambodia Air, saying eight to 10
would be deployed within the first year of its operations.
The joint venture would boost PAL revenues by $300 million to $400 million, Ang added. — VS, GMA News
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