Singapore Airlines (SIA) on Tuesday (Mar 17) confirmed that it is in discussions to purchase a stake in South Korean low-cost carrier Jeju Air.
"Singapore Airlines wishes to confirm that discussions have taken place on a possible equity investment in the airline. These discussions may not result in a transaction," the Singapore flag carrier said in a statement.
Reuters had earlier reported that SIA is in talks to take a stake in Jeju Air, which plans to make an initial public offering in the fourth quarter of this year, making it the first listed Korean low-cost carrier.
Jeju Air's market capitalization is currently around 700 billion won (US$619.30 million) based its the over-the-counter market share price.
Reuters said SIA, Jeju Air and Jeju Air's parent Aekyung Group have been in talks since late last year over the stake sale, but the size, pricing and timing of the deal remains undecided.
The SIA Group currently comprises flag carrier SIA, regional airline SilkAir and low-cost carriers Scoot and Tigerair.