Tiger Airways purchase of 33% stake in Mandala Airlines nears completion

The process is expected to be completed in around 90 days.

Tiger Airways Holdings Limited (“Tiger Airways”) Friday announced the signing of a share subscription agreement and finalisation of other commercial agreements in relation to its proposed purchase of a 33% stake in PT Mandala Airlines (“Mandala”) of Indonesia. Tiger Airways’ investment in Mandala will be held through its wholly-owned subsidiary in Singapore, Roar Aviation Pte. Ltd.

Mandala is currently undergoing a financial restructuring process in accordance with Indonesian laws. The largest shareholder in the restructured Mandala will be the Saratoga group, which will hold a 51.0% stake. The remaining 16.0% will be held by the previous shareholders and creditors of Mandala.

The next stage of the process for completion of the proposed investment involves satisfying conditions precedent, which includes, among others, the parties ratifying certain corporate actions and obtaining regulatory approvals. Completion is scheduled to take approximately 90 days, after which flight operations are expected to commence, according to a Tiger Airways report.

Acting Chief Executive Officer of Tiger Airways Holdings Limited, Mr. Chin Yau Seng, said, “We are pleased to have reached agreement for this transaction, and are excited at the prospect of Mandala resuming operations. We will continue to work closely with our business partner in this venture in order to achieve this.”

Sandiaga Uno, Founding Partner of Saratoga group said, “We are encouraged by the finalization of the transaction and we look forward to Mandala resuming its service.”

Diono Nurjadin, President Director of Mandala Airlines said that he was glad to have concluded the long process.

“We would like to thank all those who have helped us throughout the process, especially the Indonesian Government and the Director General of Civil Aviation who have given us their full support. We hope that we will continue to receive the same support so that our plans for Mandala to resume services as soon as possible can be achieved.”

The restructured airline plans to adopt the Tiger Airways business model, and plans to offer low fare travel to international and domestic Indonesian destinations within a 5-hour flying radius. Like other airlines in the Tiger Airways Group, the restructured airline would also operate Airbus A320 aircraft.