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PAL sets closing date for investment

Posted by graham on August 23rd, 2013 in Business Trends in the Philippines

Within the next two months, the deal that was struck between the national flag carrier Philippine Airlines (PAL) and Royal Group of Cambodia (RCG) to form Cambodia Airlines Co. LTD., will be completed.

According to the assistant corporate secretary of PAL Holdings Inc., PAL’s parent firm, the closing date of completion of the joint venture had been moved to October 15. This is three months longer than the original closing date target of July 15. This particular project has been approved by PAL’s board of directors last April 25.

PAL is jointly owned by the business executive Lucio Tan and San Miguel Corp (SMC). They are both shelling out $10 million worth of equity for a 49% stake in Cambodia Airlines which will be fully owned by Inter Logistics (Cambodia) Co. Ltd.

By the date of completion for this project, PAL is expected to make a downpayment of 10 percent of the total acquisition cost. The remaining balance would be paid upon dependent on the decision of Cambodia Air.

Source: GMA Network