Oasis Investments buys 5.76% of PAL
Oasis Investments II Master Fund Ltd. has acquired 1.55 billion shares in the operator of Philippine Airlines, a move deemed to indicate strong confidence in the flag carrier’s growth trajectory after exiting from bankruptcy and recently naming a new president.
In a disclosure, PAL Holdings Inc. said that Oasis has acquired shares equivalent to 5.76 percent of the airline operator.
The investment fund based in Cayman Island executed the purchase through a series of block sales amounting to $41.22 million.
“The acquisition of shares is for the purpose of long-term strategic investments and with the plan to acquire additional shares of the issuer in the future,” PAL said.
“Oasis does not, however, plan or intend to propose any changes in the business or board of directors of the issuer,” it added.
Regina Capital Development Corp. head of sales Luis Limlingan said the transaction was welcomed by market observers.
On Tuesday, PAL shares inched up by 0.22 percent to P4.48 each.
“The new investor in PAL Holdings signals a vote of confidence in the airline’s post-restructuring recovery, providing a positive boost to investor sentiment,” Limlingan said.
“But I believe the fund has no current plans to influence the board or operations, possibly indicating a hands-off approach for now,” he added.
The airline continues to rebuild its network after the pandemic disrupted operations.
In late 2021, PAL announced its exit from a voluntary Chapter 11 bankruptcy process in the United States after completing a financial restructuring plan that eliminated $2.1 billion worth of obligations.
Buoyed by revenge travel, the airline has been profitable since then.
