PAL Holdings has reiterated that its ongoing equity restructuring will allow it to attract a new strategic investor.
"A strategic investor would make it easier for PAL to achieve its goal of getting a five-star rating by 2020, as well as provide benefits in terms of the partner's contribution in equity, management, route development, or possible membership in an alliance," says the Philippine Airlines parent in a stock exchange disclosure.
It adds that the integration of the flag carrier and Air Philippines is expected to result in streamlined processes, reduced costs and higher revenue.
PAL Holdings' board has approved an equity restructuring to allow the firm to eliminate its projected deficit upon the acquisition of Air Philippines' parent company, Zuma Holdings and Management.
"The elimination of the deficits enable the company to have a favourable turnaround/restructuring in operations to unburden itself from historical losses and be in a position to declare dividends, thus making it more attractive to prospective investors," it adds.
The restructuring involves decreasing its authorised capital stock from Ps30 billion ($601 million) to Ps13.5 billion by reducing the par value of its shares from Ps1 to Ps0.45. Thereafter, it will increase the par value back to Ps1 by decreasing the number of shares on issue.
Source: Cirium Dashboard
