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Headliners | 24 December 2009
By: David Lee
Articles (57) Profile

Tiger Airways Seeks Listing To Fund Expansion
Low-cost carrier Tiger Airways has lodged its preliminary prospectus with the MAS as it seeks to raise IPO funds on the SGX to enable aircraft acquisitions, set up new bases, repay short-term loans, with the remaining balance being used for working capital. While the draft prospectus did not state how much the budget carrier is looking to raise, it is believed to be in the region of $200m according to Bloomberg.

Meanwhile, the draft said Tiger’s key shareholders Singapore Airlines (49%) and Temasek Holdings (11%) will not be divesting their stakes in the company. However, private investment fund Indigo – which has a 24% interest – will sell part of its stake, while Ryanasia will reduce its stake if an overallotment option is triggered. The private investment arm of the Ryan family (Ryanair’s founders), Ryanasia owns 16% in Tiger.

Tiger, which started with 2 Airbus A320s in 2004, has since grown its fleet to 17 A320s and has plans to expand its fleet size to 68 planes by end 2015. In its 5 years of operations, Tiger has also gone on to establish hubs in Melbourne and Adelaide. For 1H10 ended Sept 30, 2009, the company posted a net loss of $8.3m – which included a fuel hedging loss of $22m – narrowing the gap from the $25.2m loss chalked up for 1H09. Revenue came in at $206.1m, up from $183.3m previously. In the same period, Tiger’s load factor rose 5.6 percentage points on-year to 83.8%.

AIM Wins Deal Worth Up To US$135m
Advanced Integrated Manufacturing (AIM) announced that its new subsidiary AMC Penang has been awarded a 5-year contract worth up to US$135m by Honeywell International, marking a very significant milestone and endorsement of strong supply chain partnership with the latter. The deal is expected to generate an estimated additional revenue of US$27m per annum, with Honeywell having a unilateral option to extend the contract for an additional 1 year.

The new contract is in addition to 2 other recent contract announcements worth US$6m and US$5m per annum for 5 years by AIM. In total, the new contracts awarded to the company from Honeywell this year will allow it to generate an additional US$38m each year on top of its existing circuit card assembly businesses with Honeywell. The latest contract award is expected to have a material impact on company’s FY10 results ending Dec 31, 2010.

Noble Sells Gloucester For Major Stake In Rival Macarthur
Noble Group said Macarthur Coal has launched a takeover offer of A$668.5m for its newly acquired unit, Gloucester Coal and will acquire other interests in Australian coal mining assets held by Noble as well. A takeover of Gloucester would allow Macarthur to diversify its production and become the 5th biggest coal producer in Australia.

Macarthur is offering 0.84 of its shares for every Gloucester share held which, values the latter at A$8.16 a share, a 24.5% premium to the last traded price of A$6.55. Alternatively, Macarthur is offering a cash alternative of A$8 a share. Noble has agreed to accept the all-share offer and will emerge with a 24% stake in Macarthur, making it the largest shareholder in Macarthur.

In addition, Noble is also negotiating the sale of a 79.9% stake in its Donaldson coal assets to Macarthur for A$185.8m and has agreed to sell its 25.3% share in the Middlemount project for A$207.5m, giving Macarthur total control of the project.

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