San Miguel, Lucio Tan Group sign investment agreements

San Miguel Corporation (SMC) and business taipan Lucio Tan last night (April 3, 2012)signed investment agreements that will result in the issuance of new shares to thediversified conglomerate for a minority stake in flag carrier Philippine Airlines Inc. (PAL)and low-cost partner Air Philippines Corporation (Air Phil).

Under the agreement, Trustmark Holdings Corporation (Trustmark) and Zuma Holdingsand Management Corporation (Zuma), the holding companies of PAL and Air Phil willissue new shares to San Miguel Equity Investments Inc., a wholly-owned subsidiary ofSMC.

Trustmark and Zuma are majority owned by Tan.

Tan and Ramon S. Ang, San Miguel President and COO, said the new investment willallow the two airlines to strengthen operations and stay competitive with theimplementation of PAL and Air Phil’s fleet modernization program.

Ang said San Miguel welcomes the opportunity to participate in the refleeting andmodernization plans of the two airlines.