Singapore_Air From United Kingdom, joined Nov 2000, 13754 posts, RR: 17
Reply 1, posted (7 years 9 months 5 days 1 hour ago) and read 3681 times:
If Sir Richard wants to offer a decent amount for the stake then more power to him. I think FT Alphaville puts it candidly:
"It's not a secret that we regard it as an underperforming investment. We are still reviewing our plans and are open to all reasonable offers," Singapore Airlines Chief Executive Chew Choon Seng told a results briefing.
"But as they say in classified ads: No timewasters, please."
But what hope is there for Singapore? The airline has been touting its stake around since (at least) last summer, aiming to cash out while the going was relatively good. Last year, analysts estimated that Virgin Atlantic could be worth about £760m - with estimated operating profits for 2007 at about £120m taxed and valued at nine times, a slight premium to rival BA. That would have put SIA’s stake at about £370m.
But Virgin is strategically unappealing for Singapore. Richard Branson maintains control over the group and won’t sell. Equally, who would buy a minority stake in a large airline in the current climate?
Lucky that Singapore’s chief followed up his with remarks by adding that the company is in no rush for a sale.