Singapore government’s investment company Temasek Holdings will buy a 30% stake in the country’s second-largest carrier, Pacific Airlines, according to recent media reports. A source at the airline was quoted as saying that a deal would be signed later this month.
According to the reports, Temasek was picked by Vietnam’s finance ministry to help restructure the ailing airline by 2010. Temasek is said to be paying US$50.1 million for the stake—valuing the airline at US$167 million.
When contacted by Channel NewsAsia, Temasek would only say that it was still in talks over the deal.
Pacific Airlines had debts totalling some US$14 million by December last year.
Its parent Vietnam Airlines was ordered to raise new funds through a share issue or shut down the carrier.