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Singapore Airlines Main Shareholder Buys Into LAN  
User currently offlineOP3000 From United States of America, joined Jun 2009, 1785 posts, RR: 2
Posted (4 years 9 months 1 day 22 hours ago) and read 6742 times:

Singapore Airlines' majority shareholder Temasek Holdings will purchase ~ US $120 million worth of LAN Airlines shares:

http://latercera.com/contenido/655_235520_9.shtml
(In Spanish)

Temasek, which is Singapore's state-owned sovereign wealth fund, will own about 2% of LAN. The shares purchased form part of Chilean President Sebastian Pinera's remaining 11% shares in LAN that were still outstanding and had not been purchased by the company's controlling shareholders, the Cueto family.

21 replies: All unread, jump to last
 
User currently offlineOP3000 From United States of America, joined Jun 2009, 1785 posts, RR: 2
Reply 1, posted (4 years 9 months 1 day 12 hours ago) and read 6281 times:

Here's another article on the Temasek investment, courtesy of AeroLatin News blog:

http://www.aerolatinnews.com/index.php?sector=noticias&noticia=14043

Temasek, which owns 55% of SQ, has also been used by as an investment vehicle to buoy SQ's stake in MU.

Also related to LAN, the LP CEO announced that they may float shares in the Lima Stock Exchange, to finance about US $200 million in future investments in new planes and a HQ building for the Peru subsidiary:

http://www.aerolatinnews.com/index.php?sector=noticias&noticia=14045


User currently offlineACES320 From United Kingdom, joined Mar 2004, 393 posts, RR: 1
Reply 2, posted (4 years 9 months 22 hours ago) and read 5584 times:

Still to be seen if this may eventually affect the current Status Quo of alliances in South America. AV is looking to join soon. Being SQ a major player in *A they may have something in mind regarding this investments, and it is not like LA ties to AA and BA are very strong.


LHR, BHX, EDI, BKK, USM, CNX, PHU, GRU,PEI, BOG, CTG, CPH, AMS, DOH, DXB, FRA, MAD and always PEI
User currently onlinekiwiandrew From New Zealand, joined Jun 2005, 8625 posts, RR: 13
Reply 3, posted (4 years 9 months 22 hours ago) and read 5558 times:
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I really dont know if I would read too much into this , we are only talking about a 2% holding here . Maybe they just see a 2% holding in LA generating a good ROI ( unlike a 49% holding in VS   ) without necessarily wanting to take it any deeper .


Moderation in all things ... including moderation ;-)
User currently offlineAAEXP From Brazil, joined Jul 2005, 424 posts, RR: 1
Reply 4, posted (4 years 9 months 22 hours ago) and read 5558 times:

This is a Temasek, not SQ investment. It's in accordance with Temasek's increased interest in South America, a process initiated in 2007/08. I don't think you can read too much into this alliance wise. 2% is a quite small investment.

User currently offlineSCL767 From Chile, joined Feb 2006, 8862 posts, RR: 5
Reply 5, posted (4 years 9 months 22 hours ago) and read 5533 times:

Quoting ACES320 (Reply 2):
Being SQ a major player in *A they may have something in mind regarding this investments, and it is not like LA ties to AA and BA are very strong.

LAN indeed has a VERY strong relationship with both AA and IB and will not be leaving the oneworld alliance anytime soon!


User currently offlineOB1504 From United States of America, joined Jul 2004, 3447 posts, RR: 6
Reply 6, posted (4 years 9 months 21 hours ago) and read 5435 times:

Quoting SCL767 (Reply 5):
LAN indeed has a VERY strong relationship with both AA and IB and will not be leaving the oneworld alliance anytime soon!

And even then, the rest of oneworld will fight tooth and nail to keep LA from jumping ship the same way they did earlier this year to save JL.


User currently offlineMoltenRock From , joined Dec 1969, posts, RR:
Reply 7, posted (4 years 9 months 20 hours ago) and read 5243 times:

Sounds like a smart investment to me. Last I checked LAN was making pretty decent coin in a market where incomes are much lower than in the US/Europe/Singapore. Additionally, LAN stock has been doing quite well the past 12 months by more than doubling in share price.

http://www.nasdaq.com/aspx/dynamic_c...ol=LFL&timeframe=1y&charttype=line


User currently offlineACES320 From United Kingdom, joined Mar 2004, 393 posts, RR: 1
Reply 8, posted (4 years 9 months 19 hours ago) and read 5144 times:

Quoting SCL767 (Reply 5):
Quoting SCL767 (Reply 5):
LAN indeed has a VERY strong relationship with both AA and IB and will not be leaving the oneworld alliance anytime soon!

Strong with IB mild to AA let´s say, almost meaningless with BA, which by the way is the alliance leader and one of the founding members. Nothing wrong with it in my own opinion. Just that these are the dynamics of the OW alliance. You are almost reasserting my statement.

Quoting SCL767 (Reply 5):
will not be leaving the oneworld alliance anytime soon!

Hardly a matter of fact in this industry. I would not go as far as to say LA is leaving, but I fail to see no further intentions in an increased role from SQ in LA, even if is just an investment by the parent company.

Quoting OB1504 (Reply 6):
And even then, the rest of oneworld will fight tooth and nail to keep LA from jumping ship the same way they did earlier this year to save JL.

More like a JL decision to stay than an active role OW played to keep JL. Again that is why they almost lost it to Delta. They rose the stakes to a really tempting level for JL who became the catch of the day for both alliances. Just days before the announcement they would stay, the voices in the press, the media and the industry were all well convinced they were leaving. As said before that is how OW operate, nothign wrong with it, just they way it is. As a matter of fact they are the smallest of the alliances.



LHR, BHX, EDI, BKK, USM, CNX, PHU, GRU,PEI, BOG, CTG, CPH, AMS, DOH, DXB, FRA, MAD and always PEI
User currently offlineLipeGIG From Brazil, joined May 2005, 11459 posts, RR: 58
Reply 9, posted (4 years 9 months 18 hours ago) and read 5066 times:
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FORUM MODERATOR

Nice news, but as many said, i don't think a 2% share will lead to any chance of change alliances. LA will remain with OW as their big ties are AA (read as MIA) and IB (read as MAD)


New York + Rio de Janeiro = One of the best combinations !
User currently offlineSCL767 From Chile, joined Feb 2006, 8862 posts, RR: 5
Reply 10, posted (4 years 9 months 17 hours ago) and read 4985 times:

Quoting ACES320 (Reply 8):
Quoting SCL767 (Reply 5):
LAN indeed has a VERY strong relationship with both AA and IB and will not be leaving the oneworld alliance anytime soon!

Strong with IB mild to AA let´s say, almost meaningless with BA, which by the way is the alliance leader and one of the founding members. Nothing wrong with it in my own opinion. Just that these are the dynamics of the OW alliance. You are almost reasserting my statement.

BA as the "alliance leader" has a very limited network to South America. Also, why mild with AA? LA has a very strong relationship with AA and both place their respective codes on many flights operated both domestically and internationally. Also, does LA have a meaningless relationship with QF (another founding member of OW)? What about LA's future relationship with MX?


User currently offlineOP3000 From United States of America, joined Jun 2009, 1785 posts, RR: 2
Reply 11, posted (4 years 9 months 16 hours ago) and read 4953 times:

Quoting SCL767 (Reply 10):
LA has a very strong relationship with AA and both place their respective codes on many flights operated both domestically and internationally.

They also have anti-trust immunity on USA-Chile and USA-Peru.


User currently offlineSCL767 From Chile, joined Feb 2006, 8862 posts, RR: 5
Reply 12, posted (4 years 9 months 16 hours ago) and read 4939 times:

Quoting OP3000 (Reply 11):
Quoting SCL767 (Reply 10):
LA has a very strong relationship with AA and both place their respective codes on many flights operated both domestically and internationally.

They also have anti-trust immunity on USA-Chile and USA-Peru.

Yep, a good example besides MIA is JFK where AA code-shares on LAN's JFK-LIM, JFK-SCL, and JFK-YYZ services.


User currently offlineDFWEagle From United States of America, joined Dec 2006, 1076 posts, RR: 9
Reply 13, posted (4 years 9 months 11 hours ago) and read 4736 times:

Quoting ACES320 (Reply 8):
Strong with IB mild to AA let´s say, almost meaningless with BA, which by the way is the alliance leader and one of the founding members.

No, its not 'mild'. AA has a very deep anti-trust immunized relationship with LAN which is a very long-standing partnership. As it stands right now, AA’s co-operation with LAN is deeper than any other of its partners, since no other AA partnership is anti-trust immunized yet.

BA is not the “alliance leader” at all, except maybe in your head. If you read the oneworld agreements, you would know that all of the five founding members (now 4 remaining) had an equal role in the alliance from the start. BA is no more the leader than AA (which by the way is larger than BA and has a greater co-operation overall with the other members of the alliance).

The fact that BA has minimal co-operation with LAN is irrelevant. BA does not have a great level of co-operation with JAL, yet it did not make AA think twice about taking the lead in the (successful) fight to retain them in oneworld. It also would not stop them doing the same for LAN should the need arise.



Ryan / HKG
User currently offlineOP3000 From United States of America, joined Jun 2009, 1785 posts, RR: 2
Reply 14, posted (4 years 9 months 5 hours ago) and read 4410 times:

Quoting DFWEagle (Reply 13):
BA is not the %u201Calliance leader%u201D at all, except maybe in your head.

BA is in the best position geographically and until very recently financially to be the alliance leader a la LH in *A, but its historically chosen not to. They fly to each OW partner's main hub (save for SCL), and every partner flies to its main hub LHR (again save for LA). Yet except for QF (who they wanted to take over) and now IB (who they are taking over), they've been rather short-sighted IMO in terms of building stronger partnerships.


User currently offlineMoltenRock From , joined Dec 1969, posts, RR:
Reply 15, posted (4 years 9 months 5 hours ago) and read 4380 times:

Quoting LipeGIG (Reply 9):
Nice news, but as many said, i don't think a 2% share will lead to any chance of change alliances. LA will remain with OW as their big ties are AA (read as MIA) and IB (read as MAD)

They are purchasing an additional 11.3% stake in the company to add to whatever stake they had to begin with. At least that's they way a number of English language newspapers have reported it. Originally Piñera owned 26 1/3% of the airline.


User currently offlineOP3000 From United States of America, joined Jun 2009, 1785 posts, RR: 2
Reply 16, posted (4 years 9 months 4 hours ago) and read 4322 times:

Quoting MoltenRock (Reply 15):
They are purchasing an additional 11.3% stake in the company to add to whatever stake they had to begin with.

Nope - only 2%. I guess it was "lost in translation".

Here's an update on where the other chunk of the 11.3% is going:

http://www.reuters.com/article/idCNN2414120720100324?rpc=44


Axxion also said its controlling shareholder Santa Cecilia, which holds 99.84 of Axxion, agreed to sell its stake in the holding company to the Chilean group Bethia SA, which holds investments in top retailer Falabella (FAL.SN).

Axxion holds Pinera's stake in LAN, which means its sale will effectively unwind his participation in the carrier.

Celfin Capital, the bank Pinera had hired to carry out his LAN stake sale, said later in a statement that the public offering plus the Axxion deal would finalize the LAN stake sale.

Pinera's former partners, the Cueto family, will remain in control of the airline, which is one of Latin America's biggest. Analysts say they expect few changes to the company after the sale.

"Bethia is likely to be a shareholder that will not get involved in the company's operations, but it will be more of a passive shareholder," said Cristina Acle at CorpResearch."

"That means that LAN will continue to be controlled by the Cuetos."

The Bethia group holds investments in businesses that range from agriculture to retail and food products.


User currently offlineACES320 From United Kingdom, joined Mar 2004, 393 posts, RR: 1
Reply 17, posted (4 years 9 months 3 hours ago) and read 4240 times:

Do not get me wrong guys. OW is by far my favourite alliance. But they tend to be rather distant from each other, and less agressive as an alliance when compared to the likes of *A and ST. It is just that, and I see them more interested in consolidating the BA AA IB triangle, with QF and its historical links to BA than to avert an eventual loss of LA. Just my 2 cents


LHR, BHX, EDI, BKK, USM, CNX, PHU, GRU,PEI, BOG, CTG, CPH, AMS, DOH, DXB, FRA, MAD and always PEI
User currently offlineMAH4546 From Sweden, joined Jan 2001, 33276 posts, RR: 71
Reply 18, posted (4 years 9 months 1 hour ago) and read 4114 times:

Quoting ACES320 (Reply 17):
Do not get me wrong guys. OW is by far my favourite alliance. But they tend to be rather distant from each other, and less agressive as an alliance when compared to the likes of *A and ST. It is just that, and I see them more interested in consolidating the BA AA IB triangle, with QF and its historical links to BA than to avert an eventual loss of LA. Just my 2 cents

Your two cents entirely ignore how insanely strong the partnership between LAN and American Airlines - which includes the only antitrust partnership between any North American and South American airline - is.

OneWorld is quite a strong alliance, with a much stronger network balance than SkyTeam.



a.
User currently offlineEddieDude From Mexico, joined Nov 2003, 7632 posts, RR: 43
Reply 19, posted (4 years 9 months 1 hour ago) and read 4068 times:

I view the Temasek investment in LA as a purely financial one. Temasek is a sovereign fund, driven by the desire to obtain profits from its investments, and as such it targets attractive companies in all industrial and commercial sectors.The size of the investment is not material for Temasek to try and align LA with SQ or anything of that kind.


Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently offlineDocPepz From Singapore, joined May 2001, 1971 posts, RR: 3
Reply 20, posted (4 years 8 months 4 weeks 1 day 22 hours ago) and read 3919 times:

I wouldn't read too much into this either. Temasek bought and sold a 3% stake in Qantas in 2004/2006 respectively. Temasek was an anchor investor in Jetstar Asia with Qantas, which competed with SQ, Silk Air and TR. Temasek has stakes in all 3 telcos in Singapore, which compete fiercely with each other, and also has stakes in more than one Indonesian Bank.

User currently onlinekiwiandrew From New Zealand, joined Jun 2005, 8625 posts, RR: 13
Reply 21, posted (4 years 8 months 4 weeks 1 day 22 hours ago) and read 3871 times:
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OT I know , but oh how I wish that SK had not sold their stake in LA many years ago , surely if SK had held on to that stake LA would have been in *A rather than OW   


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