Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Event-Driven

Singapore Air has launched a General Offer to take&nbsp;subsidiary TigerAir private.&nbsp;TigerAir, a low-cost carrier based out of Singapore (originally set up in 2003 by Singapore Air, Temasek, Indigo Partners and Tony Ryan's Irelandia Investments) expanded through out the Noughties, building partnerships and routes to Australia, India, and several SE Asian countries, and southern China. In the last year and a half, after losing substantial money since 2011 the company has been undergoing further restructuring.At what appears to be a time closer to the end of the restructuring than the beginning, Singapore Air is attempting to buy the 44.2% of the shares that it does not own for a premium of roughly 30% above any of the measures available regarding trading prices, and higher than any broker's target price.&nbsp;The price&nbsp;looks like a good deal for shareholders. The timing and possible synergies available from bringing Tiger fully in-house seem like a good deal for Singapore Air.&nbsp;Terms are S$0.41 per share of Tiger plus the option&nbsp;to acquire roll one's investment in TGR into shares&nbsp;of Singapore Air at S$11.1043/share, the option exercisable over a "15 Market Day" (i.e. three week) period starting at some point (at the current time undisclosed) after the Settlement of the Offer has taken place.&nbsp;Because it requires 22.6+% of existing minorities to block the deal, it looks like a relatively straightforward deal though there is some possibly interesting optionality to the deal.The history of the stock suggests however there could be&nbsp;Break or Bump Risk.&nbsp;Discussion of the deal and its terms below the fold.

Singapore Air has launched a General Offer to take&nbsp;subsidiary TigerAir private.&nbsp;TigerAir, a low-cost carrier based out of Singapore (originally set up in 2003 by Singapore Air, Temasek, Indigo Partners and Tony Ryan's Irelandia Investments) expanded through out the Noughties, building partnerships and routes to Australia, India, and several SE Asian countries, and southern China. In the last year and a half, after losing substantial money since 2011 the company has been undergoing further restructuring.At what appears to be a time closer to the end of the restructuring than the beginning, Singapore Air is attempting to buy the 44.2% of the shares that it does not own for a premium of roughly 30% above any of the measures available regarding trading prices, and higher than any broker's target price.&nbsp;The price&nbsp;looks like a good deal for shareholders. The timing and possible synergies available from bringing Tiger fully in-house seem like a good deal for Singapore Air.&nbsp;Terms are S$0.41 per share of Tiger plus the option&nbsp;to acquire roll one's investment in TGR into shares&nbsp;of Singapore Air at S$11.1043/share, the option exercisable over a "15 Market Day" (i.e. three week) period starting at some point (at the current time undisclosed) after the Settlement of the Offer has taken place.&nbsp;Because it requires 22.6+% of existing minorities to block the deal, it looks like a relatively straightforward deal though there is some possibly interesting optionality to the deal.The history of the stock suggests however there could be&nbsp;Break or Bump Risk.&nbsp;Discussion of the deal and its terms below the fold.

Tiger Air:  Looks Good At First Glance But There is Risk of Break or Bump

Singapore

Tiger Airways Holdings Ltd operates an international airline. The airline offers flights throughout Asia and Australasia, including Singapore, Australia, China, Vietnam, Thailand, and Hong Kong.

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Tiger Airways Holdings (TGR SP)

Tiger Air: Looks Good At First Glance But There is Risk of Break or Bump

Singapore Air has launched a General Offer to take subsidiary TigerAir private. TigerAir, a low-cost carrier based out of Singapore (originally set...

Travis Lundy

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