Budget carrier Tigerair posted on Friday (Oct 17) an after-tax loss of S$182.4 million for the fiscal second quarter and said it will raise up to S$234 million via a rights issue.
Tigerair, whose biggest shareholder is Singapore Airlines (SIA), said the huge loss for the quarter ended Sep 30 was due primarily to one-off charges amounting to S$161.1 million, resulting from the subleasing of surplus aircraft and exit from Tigerair Australia.
To strengthen its balance sheet, Tigerair plans to raise up to S$234 million in a renounceable non-underwritten 85 for 100 rights issue. The rights shares will be priced at S$0.20 each, representing a 39 per cent discount to the one-day volume weighted average price of S$0.33 per share on Thursday (Oct 16).
SIA has committed to subscribing for its share of the rights, and will also subscribe for excess rights shares up to a total of S$140 million. Prior to the rights issue, SIA will also convert its perpetual convertible capital securities holdings in Tigerair into ordinary shares.
The conversion will raise SIA’s stake in Tigerair from 40 per cent to approximately 55 per cent before the rights Issue, effectively making Tigerair a subsidiary of SIA.
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