Date: May 13, 2020
Many SIA shareholders have contacted SIAS to question the rationale for the large cash call that SIA is making with the 3 for 2 shares rights issue and the mandatory convertible bonds (MCBs) rights issue. SIAS has reached out to SIA and I conducted a one-on-one interview with Mr Goh Choon Phong, CEO, SIA and asked him the following questions to help shareholders to understand the rationale for the rights issues.
The questions posed to Mr Goh are as follows:
- Can you please explain for the benefit of your retail investors? Why do you have both the rights issue as well as the MCB?
- How long do you think the funds raised will last? What if the outlook does not improve after say, 12 months? Like the national reserves, will you consider embarking on beefing up your reserves to face the next challenge?
- The aviation sector is highly cyclical, and investors who have invested in aviation-related sectors are badly hit by the downturn. What more can SIA do for your retail investors to have the confidence to continue investing in SIA?
- What are your long-term views on the outlook in the aviation sector? What are SIA’s strategies and plans post-COVID-19? How is SIA positioned to take advantage of the eventual recovery and increase its market share?
- SIA embarked on a Transformation Programme in May 2017. Can you share with us more about its progress and whether there’s any changes to this strategy?
- The margins are quite thin generally, How will the competitive landscape change, post-COVID-19?
- How will SIA support its investments in other airlines, for example, Virgin Australia, that is currently in voluntary administration? What will your strategy be for these airlines post-COVID-19?
Please find the answers from Mr Goh Choon Phong from the recording of the interview below.
Shareholders with questions in relation to the Rights Issue may contact the Company’s Rights Issue Helpline at +65 6878 1375, Monday to Friday excluding public holidays, between 9.00 a.m. to 5.00 p.m.
David Gerald J
Founder, President & CEO