28-6-2023 (SINGAPORE) Temasek, Singapore’s state investment firm, is planning to sell approximately S$400 million (US$295.92 million) worth of shares, equivalent to a 1.85% stake, in Singapore Airlines (SIA), the country’s national carrier. A term sheet obtained by Reuters on Wednesday revealed the details of the share sale.
According to the term sheet, the shares will be priced between S$7.202 and S$7.283 per share, representing a discount of 2.89% to 3.97% compared to Wednesday’s closing price of S$7.50.
Despite the share sale, Temasek will remain a major shareholder in SIA, maintaining a 53.5% stake in the airline, as calculated by Reuters.
The share sale is being facilitated by Citi, who serves as the sole bookrunner, as indicated in the term sheet. Citi declined to comment on the matter.
Responding to Reuters’ query, Juliet Teo, Head of Transportation & Logistics at Temasek, stated in an email, “As an active investor, we regularly reshape and rebalance our portfolio to deliver sustainable returns over the long term. We are committed to the long-term success of SIA and continue to maintain a majority stake in it.”
Singapore Airlines recently announced a record-high profit of S$2.16 billion for the fiscal year ending March 31, following three consecutive years of losses. The airline reported a strong start to the current year, with increased bookings to China, Japan, and South Korea as global pandemic restrictions eased.
SIA’s shares have seen a remarkable surge of almost 36% since the beginning of this year, reflecting positive market sentiment towards the airline.
