Lucio Tan pledges to invest in order to divest PAL stake

Filipino tycoon Lucio Tan is promising a $200 million investment in PAL in return for government protection from foreign competition. Six weeks ago he was looking to sell out for $200 million.

Filipino businessman Lucio Tan is offering to invest $200 million in Philippine Airlines PAL on condition the government restricts foreign carriers' access to the Philippines. This is a pretty new tune Tan is playing. Only six weeks ago, finance minister Jose Pardo said Tan had dropped the asking price for his entire PAL interest to $200 million from $800 million, plus the airline's $2.3 billion debt.

So is he planning to invest or divest It seems divestment is still the preferred option and in order to fetch a worthwhile price Tan is trying to secure some sweeteners for PAL. However, the protectionist measures he is after come at a cost...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222