San Miguel Corp has agreed to sell its back its stock of Philippine Airlines to major shareholder, billionaire Lucio Tan.
The Philippines’ second richest man will then have complete control of the airline once the transfer of San Miguel’s 49% stake is completed.
The deal is valued at around $1 billion and Tan has one week to complete certain unnamed formalities.
The sale value reflects the airline’s resurgence after US avaiation officials restored the highest aviation safety rating on the country.
PAL has been revamping its fleet and last year agreed a large order with aircraft maker Airbus.
It plans to extend services and open up new routes in Europe and North America.
The carrier resumed flights to London last year after a long gap and plans to expand further in Australia and Canada.
The deal is an about-turn for Tan, who last year said he was considering selling his 51% stake in the carrier.
The deal also marks a change of direction for San Miguel Corp which had been on an agressive acquisition trail, diversifying into a number of sectors.
