PAL nears completion of joint venture with Cambodia firm

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Assistant Corporate Secretary of PAL Holdings Inc Ma Cecilia Pesayco announced that the joint venture of the Philippine Airlines with Cambodia's Inter Logistics Co Ltd (ILC) would be completed by October 15. This was moved from its original closing date of July 15. She informed the stock exchange, "We received today the notice from PAL informing us that the closing date for the completion of PAL's joint venture with ILC has been moved to October 15."

PAL would be getting a 49% equity stake in Cambodia Airlines which is fully-owned by ILC. PAL would be purchasing the stake for USD 10 million. Had the joint venture been completed last July 15, PAL would have made a USD 1 million downpayment. The USD 9 million would be given upon the instruction of the board members of Cambodia Air when PAL complies with the stipulations of the agreement. Neak Oknha Kith Meng, owner of the Royal Group of Cambodia, also owns ILC. The PAL-ILC joint venture would form Cambodia Airlines Co Ltd which would serve domestic flights in Cambodia as well as in international routes.

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