- 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
Read also Maybank's most recent report:
2024-11-11 Singapore Airlines - Weaker-than-expected 2QFY25; Competition Takes Toll.
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
