Summary of key developments in TR announced this morning:
- SQ will exercise its convertibles in TR and increase its stake to 55% from 40%.
- TR will raise new equity via rights of S$234m. SQ has committed to subscribe its share and a little more if the minorities undersubscribe. Total SQ commitment is S$140m.
- TR will sell its remaining 40% stake in Tigerair Australia to Virgin Australia for A$1. Loss from this transaction is ~S$60m.
- TR is subleasing 12 excess A320s to Indigo over ~4 years. TR will provision S$99m for the difference of the leases it will receive vs pay over the lease period.
Effectively, this allows TR to start afresh with a more sensible fleet size. Next year will also see TR increasing its coordination of schedule with TZ. Looks like the worst is over for TR (at ridiculous losses) but they're not really out of the woods.
- SQ will exercise its convertibles in TR and increase its stake to 55% from 40%.
- TR will raise new equity via rights of S$234m. SQ has committed to subscribe its share and a little more if the minorities undersubscribe. Total SQ commitment is S$140m.
- TR will sell its remaining 40% stake in Tigerair Australia to Virgin Australia for A$1. Loss from this transaction is ~S$60m.
- TR is subleasing 12 excess A320s to Indigo over ~4 years. TR will provision S$99m for the difference of the leases it will receive vs pay over the lease period.
Effectively, this allows TR to start afresh with a more sensible fleet size. Next year will also see TR increasing its coordination of schedule with TZ. Looks like the worst is over for TR (at ridiculous losses) but they're not really out of the woods.
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