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Tuesday, August 19, 2014

PAL postpones stockholders meeting amid ownership dispute

The operator of Philippine Airlines (PAL) has postponed its shareholders' meeting, as the flag carrier's two key owners have yet to complete talks on how they will resolve ownership issues.

In a disclose to the Philippine Stock Exchange, PAL Holdings said its board approved last August 14 the postponement of its stockholders' meeting "in light of the ongoing discussions between the San Miguel Corp. Group and the Lucio Tan Group with respect to their indirect equity stakes in PAL Holdings, Inc, Philippine Airlines, Inc. and Air Philippines Corporation."

Under its the by-laws, the meeting should be held on the last working day of September.

Recently, San Miguel admitted that it was in discussions for either divesting from PAL or buying out Tan's group.

To recall, SMC, through wholly owned subsidiary San Miguel Equity Investments Inc, earlier entered into investment agreements with Trustmark Holdings Corp and Zuma Holdings and Management Corp, giving the food-and-beverage conglomerate a 49 percent stake in PAL and Air Philippines Express for $500 million.

The remaining 51 percent of PAL remains with Tan.

PAL Holdings reported a profit of P1.49 billion in the April to June period, reversing the P1.08 billion loss in the same three months of last year.

Second-quarter revenue shot up by 47.4 percent to P27.30 billion this year from P18.52 billion last year. Earlier, PAL president Ramon Ang said that the flag carrier likely turned in a profit starting April.

PAL carried 4.5 million passengers in the first six months of this year.

- Interaksyon

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