Tiger Airways signs a term sheet to purchase 33% stake in Mandala Airlines of Indonesia
19-May-2011 Tiger Airways Holdings Limited (“Tiger Airways”) today announced the signing of a term sheet for the acquisition of a 33.0% stake in PT Mandala Airlines (“Mandala”) of Indonesia, subject to due diligence and conclusion of definitive contracts.
Mandala is currently undergoing a financial restructuring process in accordance with Indonesian laws.
The restructured airline plans to adopt the Tiger Airways business model, and plans to offer low fare travel to international and domestic destinations within a 5-hour flying radius from Indonesia. Like other airlines in the Tiger Airways Group, the restructured airline would also operate Airbus A320 aircraft. Flight and cabin crew will be based in Indonesia.
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.
Tiger Airways will make further announcements as and when it enters into definitive agreements.