San Miguel Not Interested in Increasing Stake in Philippine Airlines

The President of San Miguel Corporation, Ramon Ang, has revealed that it is not interested in increasing its stake in Philippine Airlines as the conglomerate is more focused on its power generation unit. 

Copyright Photo:  Edwin Tuyay/Bloomberg

Ang, who also serves as President of Philippine Airlines, indicated that the group is not interested in assuming the stake currently held by Lucio Tan. "San Miguel will only stick to that 49 percent investment in Philippine Airlines," said Ang.

Tan announced last year that he wanted to exit the aviation business after being approached by various investors to assume his stake in the airline. Since then, rumours have been swirling around the industry with names such as All Nippon Airways of Japan being a possible investor and strategic partner. However, no such deals have materialised to date.

The San Miguel Corporation acquired its 49-percent stake in Philippine Airlines in April 2012 infusing $500-million in capital. Meanwhile, Ang has not ruled out the possibility of SMC selling its stake in the national flag carrier. "If there is such an offer, I will have to discuss it with our partners and board of directors," said Ang.