PAL gets nod to adjust capital to lure investor
Philippine Airlines said it secured a green light from the Securities and Exchange Commission to overhaul its authorized capital stock in preparation for the entry of new strategic investors.
PAL Holdings Inc., the parent company of PAL, said in a disclosure to the stock exchange the SEC approved the flag carrier’s application to reduce its authorized capital stock from P20 billion to P13 billion, via a decrease in par value per share from P0.20 to P0.13.
The SEC also approved PAL’s application to increase par value per share from P0.13 to P1 without increasing the authorized capital stock, and thereby decreasing the number of shares from 100 billion to 13 billion shares.
PAL president and chief operating officer Jaime Bautista earlier said the airline was in talks with possible investors. “We’re hoping we can close the deal within the year,” he said.
The investor is expected to acquire up to 40 percent of the flag carrier.
PAL tapped Morgan Stanley as a financial advisor for the transaction.
PAL is taking delivery of seven brand new aircraft worth over $550 million within the second half of the year as a part of its fleet expansion and modernization program.
The airline led by tycoon Lucio Tan expects delivery of two Boeing 777-300 ER in December and five next-generation Bombardier Q400 in July to November.
The twin-engine A350-900 will become PAL’s new flagship aircraft.
PAL ordered six A350s, with an option for six more. The aircraft is capable of flying non-stop from Manila to New York.
The additional B777-300 ERs will be deployed to the London and North American routes.
PAL Holdings earlier reported a net loss in the first half of P1.05 billion. In the second quarter alone, the company posted a total comprehensive loss of P150.6 million.
Total revenues in the first half reached rose 17.7 percent to P67.76 billion from P57.57 billion a year ago.