Press Statement – SIA’s Offer to Tiger Airways

Date: November 24, 2015

SIAS has raised the concerns of minority shareholders of Tiger Airways to SIA regarding its offer to Tiger Airways.

SIAS notes that in 2013, SIA bought out Temasek’s 7% stake in Tiger Airways at $0.678 (Temasek owns 57% of SIA). Minority shareholders also approved a whitewash waiver for SIA in 2013 to allow SIA to become controlling shareholder without making a mandatory general offer. At that time, SIA bought perpetual convertible securities that were eventually converted to shares at S$0.565 per share in 2014.

A Tiger Airways’ shareholder, who held on to his IPO shares that was bought for $1.50 a share and subscribed to all three rights issues since IPO would have paid an average of $0.67 a share. The offer price is 39% lower than what long term minority shareholders paid. This offer, the minority feels, is not reasonable.

While SIAS understands that the current market conditions are different, nevertheless, the minority shareholders’ interest must be taken into account. Therefore, SIAS calls upon the Board of Tiger Airways to carefully review the SIA offer to ensure that the minority is dealt with fairly. Minority shareholders should wait for the IFA report to determine the fairness of the offer.

David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)