SATS to buy 10% stake in Evergreen Sky Catering Corp from Malaysia Airlines

GROUND-HANDLER SATS has entered into a conditional share sale agreement with Malaysia Airlines to acquire a 10 per cent stake in Evergreen Sky Catering Corporation (ESCC) for RM100 million (about S$32.3 million).

Under the agreement, it will be acquiring 11 million ordinary shares.

SATS already owns 15 per cent in ESCC and the proposed acquisition will boost its stake in the catering company to 25 per cent.

As at Sept 30, 2016, the unaudited book value and net tangible asset value attributable to the proposed acquisition was approximately NT$330 million (approximately S$14.8 million).

"The proposed acquisition is in line with the company's strategy of growing the scale of its food business and enhancing its connectivity to better serve its customers across key airports in Asia," SATS added.