Cebu Pacific (CEB) signed a share purchase agreement with ALI Capital for the acquisition of AirSWIFT for 1.75bn Philippine pesos ($30.7 million), the company said in a stock filing on October 7, 2024.
The acquisition was approved by ALI Capital and Cebu's board of directors.
"Following its purchase, CEB 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," Cebu said in a statement. "With this, the acquisition of AirSWIFT is expected to have a material impact on the net assets and earnings per share of CEB."
The payment of the acquisition will be a one-time cash payment, but it added it will place the purchase price in escrow - meaning a third party will hold the cash. The funds will be released after post-closing obligations and adjustments are met.
Cebu added that will AirSWIFT's flight schedules and service will remain unchanged. AirSWIFT operates flights from Manila and Clark to El Nido in Palawan, as well as from El Nido to Bohol, Borocay, Cebu, and Coron.