Bautista back as PAL president, replacing Ang

MANILA, Philippines - Lucio Tan’s group took back full control of Philippine Airlines Inc. (PAL) as representatives of San Miguel Corp. (SMC) in the airline’s board of directors, including president and chief operating officer Ramon Ang, were replaced.

Tan was re-elected chairman and chief executive officer by the PAL board of directors yesterday while current general manager Jaime Bautista was elected president and chief operating officer, replacing Ang.

Other new officers of the PAL board include Joseph Chua as vice chairman, Florentino Herrera III as corporate secretary and Marianne Raymundo as chief financial officer.

Also appointed members of the PAL board are Carmen Tan, Heinrich Khoo, Manuel Laza-ro, Johnip Cua, Lucio Tan Jr., Michael Tan, Washington SyCip, Alberto Lina, Estelito Mendoza, Antonino Alindogan Jr., and Gregorio Yu.

The 10 new officers and directors replaced the SMC representatives led by Ang whose resignations were accepted effective Oct. 23.

The Tan group, through Buona Sorte Holdings and Horizon Global Investments, bought back the 49 percent interest of San Miguel Equity Investments Inc. of SMC last Sept. 15 for a total consideration of $1.3 billion.

The SMC bought the 49 percent stake in Trustmark Holdings Corp. in April 2012 for a total consideration of $500 million. It embarked on an ambitious massive fleet renewal program involving the acquisition of 100 brand new airplanes.

Trustmark owns and controls 89.78 percent of the issued and outstanding shares of PAL Holdings that owns 98.27 percent of PAL.

Buona Sorte Holdings and Horizon Global Investments have offered to buy out the minority shareholders of PAL and its parent firm PAL Holdings Inc.

The group has set the voluntary tender offer price for PAL Holdings at P1.19 per share and that of PAL at P0.31 per share. Minority shareholders have until Nov. 19 to sell their shares in PAL Holdings and PAL and the settlement date scheduled on Nov. 24.

“This voluntary tender offer is intended to provide the minority shareholders of PAL Holdings and PAL with the opportunity to monetize their investments and divest their shareholdings in these companies,” the firms said in the summary of terms of the voluntary tender offer.

The Tan group has committed to keep PAL Holdings listed at the PSE as it intends to comply with the 10 percent minimum public float requirement of the exchange once the voluntary tender offer is completed.

Bautista earlier said the voluntary tender offer is not for the purpose of delisting PAL Holdings.

He explained that based on the rules of the Securities and Exchange Commission, PAL is not mandated to conduct a mandatory tender offer as the transaction did not involve a change in control of the company.