San Miguel Corporation (SMC) and business taipan Lucio Tan last night (April 3, 2012) signed investment agreements that will result in the issuance of new shares to the diversified conglomerate for a minority stake in flag carrier Philippine Airlines Inc. (PAL) and low-cost partner Air Philippines Corporation (Air Phil).
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 COO, 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