PAL says ”no definite agreement with new investor”

January 23, 2019

Philippine Airlines (PAL) Holdings said Wednesday ‘’there is no definite agreement between PAL and any investor’’ following a news report that All Nippon Airways (ANA) is finalizing its entry the flag carrier.

‘’Please be informed that as mentioned previously, PAL has always been open to the possibility of a strategic investor. As of date, there is no definite agreement between PAL and any investor,”’ said PAL Holdings in a disclosure to the Philippine Stock Exchange (PSE).

‘’PAL plans to establish itself as a world-class airline, but said goal does not necessarily involve the entry of any investor. In 2018, PAL has improved its rating internationally even without the support of an investor,’’ it added.

Nihon Keizai Shimbun reported that ANA Holdings is set to acquire 10 percent stake in PAL for $90 million.

PAL has code share agreements with ANA between Manila and Japan

Earlier, Jaime Bautista, president and chief operating officer of PAL said it expects to close a deal with a strategic investor in the first half of 2019.

PAL tapped Morgan Stanley as financial advisor for the transaction.

PAL Holdings reported a net loss of P3.29 billion in the January to September period last year from P2.31 billion losses in the same period in 2017.

In the third quarter, PAL’s net loss amounted to P2.84 billion, 39.9 percent higher than last year’s same period total comprehensive loss of P2.03 billion.

Total revenues for the period January to September amounted to P112.07 billion, 16 percent higher than P96.58 billion in the same period in 2017. For the third quarter, total revenues amounted to P36.94 billion or 22 percent higher than P30.27 billion in 2017. DMS