Tigerair (Singapore Changi) minority investors have appealed to the board of Singapore Airlines (SQ, Singapore Changi) to revise and improve their original offering for the remaining 44.2% stake in the budget carrier.
Last month, Singapore Airlines launched a takeover bid for Tigerair offering the LCC's shareholders SGD0.41 (USD0.29) in cash per share which valued their combined shareholding at SGD453 million (USD322 million). The deadline for acceptance was December 28.
However, according to Channel News Asia, the shareholders have now written to the Securities Investors Association Singapore (SIAS) to ask them for their assistance in securing a better deal along with an extended acceptance deadline.
“We are concerned only about the long-term Tiger Airways minority investors, who have stayed with the company through thick and thin. These are the shareholders who are not satisfied and may not accept the offer,” David Gerald, SIAS president and CEO said in a letter addressed to SIA’s chairman and board members.
The minority shareholders' concerns centre on SIA's previous offerings for Tigerair stock including the SGD0.565 it paid per share to increase its stake from 40% to 55.8% and the SGD0.678 it paid per share to Tigerair's previous shareholders, Temasek.
Singapore Airlines' offer, while voluntary, is conditional on it assuming more than 90% control of Tigerair. Once that threshold has been surpassed, SIA will then de-list Tiger from the Singapore Exchange.
