Cebu Pacific Air (5J, Manila Ninoy Aquino International) says it has officially signed a share purchase agreement with ALI Capital Corp. for the acquisition of 100% of AirSWIFT (T6, Manila Ninoy Aquino International) for PHP1.75 billion Philippine pesos (USD30.8 million).

In a statement to the local bourse, Cebu said the price was arrived at after arm’s length negotiations on a willing-buyer, willing-seller basis and took into account, inter alia, the net asset value and financial performance of AirSwift. However, while the transaction has already secured the Cebu board's approval, closure of the acquisition is still subject to the satisfaction (or waiver) of customary conditions which include all approvals from the relevant government bodies and entities.

The PHP1.75 billion consideration is comprised of outstanding shares and shareholder advances and will be done as a one-time cash payment. Cebu will place the funds in escrow which will only be released after all post-closing obligations and the post-closing adjustments are met.

Once the buyout is complete, there will be no change to AirSWIFT’s flight schedules or service. A boutique airline that caters to the domestic leisure travel market, AirSWIFT operates two ATR42-600s and three ATR72-600s on scheduled flights from Manila and Angeles City Clark International to El Nido in northern Palawan, and from El Nido to other major tourist destinations in the country, including Cebu, Caticlan, Busuanga, and Panglao.

"This strategic decision allows both organizations to focus on their respective core businesses, enhancing operational focus and efficiency, and marks an exciting new chapter for both AirSWIFT and Cebu," it said. "Cebu will eventually add El Nido to its routes, widening its network which will contribute to growth opportunities, and leveraging its operational expertise to be able to offer more cost-effective options for its growing customer base."

For its part, Cebu's Cebgo (DG, Manila Ninoy Aquino International) subsidiary operates five ATR72-500s, two -500(F)s, and fifteen ATR72-600s on scheduled flights throughout the Philippines.

ALI Capital Corp. is a wholly owned subsidiary of Ayala Land, Inc., which is in the process of consolidating its business around its main focus - property development.