• Singapore Air receives acceptances for 93.8% of Tiger Air
  • Singapore Air extends offer closing date by two weeks

Singapore Airlines Ltd. will take Tiger Airways Holdings Ltd. private after more than 90 percent of shareholders accepted its offer valuing the low-cost carrier at about S$1.13 billion ($802.4 billion).

Tiger Air shareholders embraced a sweetened offer of 45 Singapore cents a share made last month, compared with Singapore Air’s original proposal of 41 cents a share from November. The flag carrier received acceptances for 93.8 percent of Tiger Air as of Feb. 5, it said in a statement late Friday.

Singapore Air said it will extend the offer closing date to Feb. 19 and suspend the trading of Tiger Air shares thereafter, a move planned after the budget airline expanded too much amid competition that has led other carriers such as Malaysia Airlines Ltd. to go private or collapse. Tiger Air has been restructuring its operations, including canceling unprofitable routes and cutting capacity, but still has posted losses in nine of the past 12 quarters.

Tiger Air gained 1.1 percent to close at 46 Singapore cents Friday before the announcement, exceeding Singapore Air’s offer. The flag carrier, which reported profit that beat estimates after the market’s close Thursday, rose 3.9 percent to S$11.24.

Sweetened Offer

Under Singapore takeover laws, the flag carrier needs to acquire at least 90 percent of Tiger Air shares to take it private. Shareholders of the budget airline were also given the option of buying Singapore Air shares at S$11.1043 each.

Singapore Air had acceptances for 77.48 percent of Tiger as of Jan. 4, when it improved the bid. The higher offer came after the Securities Investors Association Singapore, which campaigns on behalf of minority shareholders, urged the airline’s board to consider raising the price, noting that Singapore Air paid 56.5 cents a share to boost its Tiger Air stake in 2014.

Singapore Air injected funds into Tiger Air in 2014 by increasing its stake and making the frills-free carrier a subsidiary.

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