SIA up for selling stake in VS

The Business Times this morning states that SIA is open to any reasonable and serious offer for its 49% stake in VS.

SIA Chief Exec Chew Choon Seng is quoted as saying that it is no secret that VS is regarded as an underperforming investment, that SIA is open to all offers. However, he also said that SIA isn't desperate to sell its stake in VS.

Apparently since the 600m purchase of the 49% stake in 1999 although SIA has been collecting dividends, there is frustration about SRB's refusal to offer any management control.

Cheers, H

This is an interesting one and seems to be cropping up time and time again.

I think SQ were not very happy with the VK situation that VS has got itself into.

Whilst this is all very good in theory in practice there will be very few airlines that will want this 49% stake. It will be difficult to raise the finance for this sort of move in the current climate, most airlines are struggling themselves and aren't looking to acquire and of course the lack of management opportunity won't be appealing.

If anyone is likely I would imagine that LH will be the most interested. They seem to have made it fairly public that they wish to control BD and a 49% stake in VS could pave the way for a combined airline, which is what SRB would want in an ideal world.

[RichardMannion]

Slightly related, but I did see that SQ annouced huge $2bn SGD profits yesterday.

Lufty senior execs in discussion with BA today.
With VS soon....

Probably paving the way to the BMI takeover with some route transfer sweetners.

Was it not around this time last year that SQ mentioned this, just as they were announcing profits? Seems quite strange to me that they have not done anything actively to pursue this in the past year. As a VS employee, the SQ management option was never given when they bought their 49% stake and their was no joint discussions between either boards regarding the A380/B787 purchases.

I think it's a simple case of SQ looking to make headlines, and it will die out again until this time next year.

(PS my first post, but don't feel you have to be nice!)

Welcome B..cat

Seems exactly as you say - if they get the right offer they will sell, but not much point in wingeing about management say. They got what they paid for.

Welcome Boeingcat.

I do feel this is SQ just trying to scare VS into making a move.

As you said it happened last year as well.

The point is SQ know that now is not a good time to sell and they know VS know that. The current climate if you can get finance is a buyers market thus meaning that SQ will probably be offered way below what they want.

Of course they could also be testing the water to see who is interested. Other than LH I really don't see any potential buyers.

I don't see it happening at all.