Tiger Airways to Purchase 33% of Indonesias Mandala Airlines

Travel News Asia Latest Travel News Podcasts Videos Monday, 26 September 2011

Tiger Airways has signed a share subscription agreement and finalisation of other commercial agreements in relation to its proposed purchase of a 33% stake in PT Mandala Airlines of Indonesia. Tiger Airways investment in Mandala will be held through its wholly-owned subsidiary in Singapore, Roar Aviation Pte. Ltd.

Mandala is currently undergoing a financial restructuring process in accordance with Indonesian laws. The largest shareholder in the restructured Mandala will be the Saratoga group, which will hold a 51% stake. The remaining 16% will be held by the previous shareholders and creditors of Mandala.

The next stage of the process for completion of the proposed investment involves satisfying conditions precedent, which includes, among others, the parties ratifying certain corporate actions and obtaining regulatory approvals. Completion is scheduled to take approximately 90 days, after which flight operations are expected to commence.

Acting Chief Executive Officer of Tiger Airways Holdings Limited, Mr. Chin Yau Seng, said, We are pleased to have reached agreement for this transaction, and are excited at the prospect of Mandala resuming operations. We will continue to work closely with our business partner in this venture in order to achieve this.

Sandiaga Uno, Founding Partner of Saratoga group added, We are encouraged by the finalization of the transaction and we look forward to Mandala resuming its service.

The restructured airline plans to adopt the Tiger Airways business model, and plans to offer low cost travel to international and domestic Indonesian destinations within a 5-hour flying radius. Like other airlines in the Tiger Airways Group, the restructured airline would also operate Airbus A320 aircraft.

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