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PAL hints at delay in securing foreign investor

Philippine Airlines (PAL) has hinted that its search for a strategic investor is likely to continue into 2018, a push-back from its previous target of closing a deal by the end of the year.

In a stock exchange disclosure, the Philippine flag carrier confirmed a local news report quoting president Jaime Bautista saying that should the operating environment "remain challenging", the airline will wait for the situation "to improve" before it seals a deal with a foreign airline investor.

Bautista had previously said that PAL is offering up to a 40% stake for sale, and that it is in advanced talks with an airline investor. It wants a strategic investor to help with its next stage of growth.

The article, however, said that the investor may take a stake of between 10% and 40%. Issues being discussed include PAL's valuation, and whether the investor should take a stake in PAL or its listed parent PAL Holdings.

"The amount or percentage of investment has not been agreed upon and the completion of the transaction is likewise not determined at this time," says PAL.

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