Tiger Airways to raise $158.6m through renounceable rights issue

DBS bank and Standard Chartered will be the joint managers and underwriters for the rights issue.

In a release, Tiger Airways Holdings announced that it is proposing to undertake a renounceable rights issue to raise gross proceeds of approximately S$158.6 million.

Pursuant to the Rights Issue, up to 273,423,930 new ordinary shares in the capital of the Company will be issued at an issue price of S$0.58 for each Rights Share on the basis of one (1) Rights Share for every two (2) existing ordinary shares in the capital of the Company held by shareholders of the Company as at a time and date to be determined by the directors of the Company for the purpose of determining the Shareholders’ entitlements under the Rights Issue, fractional entitlements to be disregarded.

The Issue Price represents a discount of approximately 39% to the last traded price of S$0.955 per Share on 25 August 2011, being the date of this announcement, and a discount of approximately 30% to the theoretical ex-rights price of S$0.83 per Share.

As at the date of this announcement, Singapore Airlines Limited and Dahlia Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek Holdings Limited, hold an aggregate of 219,195,000 Shares, representing approximately 40.2% of the existing issued share capital of the Company.

To show their support for the Rights Issue and to demonstrate their commitment to and confidence in the prospects of the Company and its subsidiaries, SIA and Dahlia have undertaken to the Company that they will, inter alia, subscribe and pay in full for and/or procure the subscription and payment in full for an aggregate of up to 246,081,537 Rights Shares representing in aggregate 90.0% of all the Rights Shares.

The Company has appointed DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited as the joint managers and underwriters for the Rights Issue (the "Joint Managers and Underwriters"). The Company has also appointed Standard Chartered Securities (Singapore) Pte. Limited as the sole financial adviser for the Rights Issue.