SATS' wholly owned subsidiary, Asia-Pacific Star Private (APS), is setting up a joint venture (JV) in Singapore called DFASS SATS with DFASS (Singapore).
The business will provide inflight duty-free/duty-paid sales and concessions, mail order and pre-order sales, supplying of liquors for inflight pouring services and operating ground-based duty-free and/or duty-paid retail sales.
APS and DFASS will each hold a 50 per cent stake in the company.
Under the terms of the agreement, DFASS will transfer to the JV company certain assets in exchange for shares in the capital of DFASS SATS. APS will inject about S$11.4 million in cash in exchange for shares in the JV company.
The deal is contingent on certain conditions.