Saturday, April 7, 2012

Philippine Airlines Bought by San Miguel Corp

San Miguel Corp. (SMC) and business taipan Lucio Tan on Tuesday night
signed an investment agreements that would result to a minority
ownership of the diversified conglomerate into Philippine Airlines
Inc. (PAL) and low-cost partner Air Philippines Corporation (Air

Under the agreement, Trustmark Holdings Corporation (Trustmark) and
Zuma Holdings and Management Corporation (Zuma), the holding companies
of PAL and Air Phil, will issue new shares to San Miguel Equity
Investments Inc., a wholly-owned subsidiary of SMC.

Trustmark and Zuma are majority owned by Tan.

Tan and Ramon S. Ang, San Miguel president and chief operating
officer, said the new investment will allow the two airlines to
strengthen operations and stay competitive with the implementation of
PAL and Air Phil's fleet modernization program.

Ang said San Miguel welcomes the opportunity to participate in the
refleeting and modernization plans of the two airlines.

On April 3, Trustmark Holdings Corp., majority shareholder of PAL
Holdings Inc., entered into investment agreements with San Miguel
Equity Investments Inc., a wholly owned subsidiary of San Miguel Corp.
that will result in the issuance of shares to SMEII where the latter
will take a minority stake in the company, PAL Holdings said in a
separate statement.

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