Philippine Airlines (PAL) majority owner Lucio Tan is offering to buy out minority shareholders in PAL Holdings Inc (PAL.PS), the carrier's parent company, at 1.19 pesos per share, less than a quarter of the stock's current market price, regulatory filings showed.

Shares of PAL Holdings were down 0.2 percent at 5.30 pesos as of 1:43 a.m. EDT on Wednesday, as the voluntary tender offer began.

The offer runs until Nov. 19 and follows Tan's $1 billion deal to acquire San Miguel Corp's (SMC.PS) 49 percent stake in PAL Holdings. With a free float of just 10.22 percent and a market value of around $3 billion, Tan currently owns about 90 percent of PAL Holdings.

Tan is also offering to buy out minority shareholders of the unlisted flag carrier, which is about 98 percent-owned by PAL Holdings, at 0.31 pesos per share.

PAL Holdings management hasn't recommended shareholders accept Tan's offer, and said on Monday it intends for the company to remain publicly listed despite the tender offer.

"In the event that at the conclusion of the tender offer, the exchange's 10 percent minimum float requirement is breached, the company shall undertake the necessary measures to comply with the rules," it told Manila's stock exchange.