Monday, September 26, 2011

Tiger Airways

Tiger Airways: Signing of a term sheet for the acq of a 33% stake in PT Mandala Airlines of Indonesia for 22.6m for approx $14.6m in kind through services. Mandala is a loss making airline which has undergone a debt restructuring plan where its unsecured creditors were coverted to 15% of its share bapital base. Mandala will operate low fare travel from Indonesia and also domestic destinations within Indo. As of 30 Jun 2011, Mandala has a net loss of $5.5m and is 51% owned by Saratoga, an Indo invt firm. Forward estimates by analysts expect co to post a loss in 2012.

CIMB maintains Underperform with TP$0.54 with expectation of losses from Mandala in initial yrs and to contribute only significantly 3 yrs from now.

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