Singapore Airlines - Maybank Research 2024-09-02: Clearing The Final Hurdle For Merger Of Vistara & Air India

Singapore Airlines - Clearing The Final Hurdle For Merger Of Vistara & Air India

Published:
SIA (SGX:C6L) | SGinvestors.ioSIA (SGX:C6L)
  • Singapore Airlines (SIA) said it has received approval from the Indian government for foreign direct investment (FDI), as part of a merger in which Vistara, its 49%-owned JV with Tata, will be absorbed into Air India.
  • - Read this at SGinvestors.io -

Expects the deal to be completed by end-2024

  • The FDI approval, together with anti-trust and merger control clearances, as well as other governmental and regulatory approvals received to date will clear a significant hurdle towards the completion of the deal.
  • The parties are in discussions to extend the Long Stop Date (previously indicated as 31 Oct 2024) to accommodate the latest expected transaction completion date.
  • - Read this at SGinvestors.io -

But more investment may be required

  • SIA will swap its 49% stake in Vistara and inject a further INR20,585m (US$247m) in return for a 25.1% direct stake in the enlarged entity. SIA and Tata Sons have also agreed to participate in an additional capital-injection exercise into the enlarged Air India after the completion of the merger, to fund the growth and operations of the enlarged Air India. The capital injections will be on a pro-rata basis.
  • SIA’s pro-rata share of 25.1% of the additional capital injection would be up to INR50,200m (US$600m), based on its current agreement with Tata Sons.

Regional competition is catching up rapidly

  • Read more at SGinvestors.io.




Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.




Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2024-09-02



Previous report by Maybank:
2024-08-01 Singapore Airlines (SIA) - A Slow Take-Off; Soft 1QFY25 Earnings.

Price targets by 4 other brokers at SIA Target Prices.

Listing of research reports at SIA Analyst Reports.

Relevant links:
SIA Share Price History,
SIA Announcements,
SIA Dividends & Corporate Actions,
SIA News Articles





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