With all third quarter corporate earnings of listed companies almost in, a review of the financial statement of conglomerate San Miguel Corp. in the first nine months of the 2014 revealed that the company sold its 49-percent stake in Philippine Airlines back to tycoon Lucio Tan group for $874 million.
San Miguel, according to the third quarter financial report it submitted to the Philippine Stock Exchange, received $874 million, or an equivalent P38.616 billion, from the sale of its 49-percent equity interest in Trustmark Holdings Corp. and Zuma Holdings and Management Corp. , both controlled by Lucio Tan.
The sale includes the indirect ownership of 43.23 percent and a 48.98-percent beneficial interests in PAL and Air Philippines Corp., respectively.
The deal also included the sale of San Miguel’s equity interest and the cancellation of subscription rights on the shares of stock of Fortunate Star Ltd.
San Miguel and the Lucio Tan Group did not initially disclose the actual details of the buyback transaction, fueling a guessing game in the market.
Some reports said deal was worth as much as $1.3 billion, while others put the value of the transaction at $900 million.
San Miguel in April 2012 bought an indirect 49-percent stake in the airline for $500 million and took management control. San Miguel acquired the 49-percent stake from PAL’s parent, PAL Holdings Inc., and later made cash advances to finance the airline’s refleeting program.