4 days ago
Sats proposes 4.2 million euro sale of 49% stake in Servair joint venture to Swiss airline caterer Gategroup
[SINGAPORE] Ground handler Sats is proposing to divest 509,600 ordinary shares or around 49 per cent of paid-up share capital of holding company Servair-Sats to the Swiss-headquartered airline catering company Gategroup.
The consideration for the disposal, arrived at on a willing buyer-willing seller basis after arms' length negotiations, is around 4.2 million euros (S$6.1 million) and shall be paid fully in cash by Gate Gourmet Switzerland, a subsidiary of Gategroup.
Servair-Sats is a joint venture between Sats and caterer Servair, which is owned by Gategroup. Gategroup bought Servair from airline Air France-KLM.
Sats said on Thursday (Jun 5) that the move is consistent with its capital recycling and reallocation strategy to optimise its investment portfolio and unlock value for stakeholders.
It added that the divestment allows it to monetise its minority stake in Servair-Sats and that raised proceeds from the sale would bolster its balance sheet, allowing it to refocus its resources to repay debt and/or deploy capital to core strategic businesses.
The proposed sale is not expected to have any material impact on Sats' consolidated net tangible assets per share or the consolidated earnings per share for the current fiscal year ending March 2026.
Sats shares ended Thursday 0.6 per cent or S$0.02 higher at S$3.14, before the announcement.
