Temasek sells 1.85% stake in Singapore Airlines, remains top investor

Temasek sells 1.85% stake in Singapore Airlines, remains top investor
Singapore Airlines (SIA) planes sit on the tarmac at Changi Airport on Mar 3, 2016. (Photo: Reuters/Edgar Su)

HONG KONG/SINGAPORE: Singapore’s state investment firm Temasek is selling around S$400 million (US$295.92 million) worth of shares, or a 1.85 per cent stake, in the country’s national carrier Singapore Airlines (SIA), according to a term sheet seen by Reuters on Wednesday (Jun 28).

The shares are priced between S$7.202 and S$7.283 per share, the sheet shows, representing a 2.89 per cent and 3.97 per cent discount to the last close of S$7.50 on Wednesday.

Temasek will continue to be a major shareholder in SIA with a 53.5 per cent stake, according to Reuters’ calculations.

Citi is the sole bookrunner on the share sale, the term sheet showed.

Citi declined to comment.

“As an active investor, we regularly reshape and rebalance our portfolio to deliver sustainable returns over the long term,” Juliet Teo, Temasek’s Head of Transportation & Logistics, said in an emailed statement in response to Reuters query on Wednesday.

“We are committed to the long-term success of SIA and continue to maintain a majority stake in it,” she added.

SIA announced last month a record-high profit of S$2.16 billion for the year ended Mar 31, after posting losses for the past three years, and said it was off to a strong start with higher bookings to China, Japan and South Korea as pandemic curbs ended globally.

Shares of SIA have jumped almost 36 per cent so far this year.

Source: Reuters/zl