Reported 8 months ago
In line with Tigerair's application to transfer its stock to the mainboard, China Airlines, its holding company with a 90% stake, announced plans to dispose of not more than 37,000 shares at a minimum price of $41 per share, also confirming the continued leasing of 18 aircraft to meet high travel demand. Tigerair, set to complete a year on the Innovative Stock Market, has decided to apply for a mainboard listing expected in the fourth quarter, currently being the profit leader in the aviation sector in Taiwan, earning $1.92 per share in the first quarter of this year, closing at $50.1 yesterday. China Airlines could benefit from a potential stock increase as Tigerair transitions to the mainboard, with experts estimating profits exceeding $1.178 billion due to the sale. However, China Airlines clarified that according to IFRS rules, the difference between the selling price and book value will be reflected as capital reserves, not included in the profit and loss statement, but enhancing net worth and facilitating dividend distribution. Moreover, to address disruptions in the aircraft supply chain and delayed deliveries of new aircraft, China Airlines announced the continued leasing of 8 A330-300 and 10 777-300ER aircraft, amounting to nearly tens of billions of NT dollars.
Source: YAHOO