MULLS CAPITAL-RAISING ACTIVITIES FOR PAL, ETON
MANILA, NOVEMBER
25, 2011 (STAR) By Zinnia B. Dela Peña - Tycoon Lucio Tan is
considering several capital-raising activities for flag carrier Philippine
Airlines (PAL) and real estate deve-lopment firm Eton Properties Philippines
Inc.
"We will study," said Tan when asked whether the group was looking at other
fund-raising programs for his other companies.
Tanduay Holdings Inc. (THI), the distillery arm of the Tan Group of
Companies, is undertaking a follow-on offering to raise as much as P2.1 billion
to fund the expansion of its subsidiaries.
THI president Wilson Young said the Filipino-Chinese billionaire is keenly
awaiting the outcome of the liquor firm's additional share sale to help the
group determine whether or not to pursue similar fund-raising activities for the
other Tan-owned companies.
"The possibility of PAL and Eton raising funds through the capital market is
carefully being studied. The timing would be a major factor given volatile
market conditions ," Young said.
THI and PAL Holdings director Michael Tan said the group remains open to
taking in investors in the airline, which is currently besieged by a labor
strife, but refused to elaborate.
PAL incurred a net loss of $39.4 million in the second quarter of its fiscal
year ending March 2012, 51 percent higher than the $26 million loss recorded in
the same period last year due to skyrocketing jet fuel costs. Total revenues
rose 4.7 percent to $420.4 million.
Total expenses likewise grew 22.6 percent to $84.8 million to $ 459.7
million. Jet fuel, which continued to account for PAL's biggest expense,
contributed the largest increase of $ 48.3 million, or 33.9 percent higher from
$142.5 million in 2010 to $ 190.8 million.
Eton, on the other hand, is required to beef up its public float, currently
at 5.6 percent, to the mandated minimum level of 10 percent.
Chief News Editor: Sol Jose Vanzi
© Copyright, 2011 by PHILIPPINE HEADLINE NEWS ONLINE
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rights reserved
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