Brokers' take

SATS Limited BUY Oct 19 close: S$4.61 Fair value: S$5.05 OCBC Investment Research, Oct 19

SATS Limited (SATS) announced on Wednesday that it has on Oct 17, 2017 entered into a memorandum of agreement (MOA) with Turkish Airlines (THY) relating to the provision of in-flight catering services to THY and other airlines at Istanbul New Airport. Pursuant to the MOA and subject to due diligence, SATS will invest in a catering company in Turkey, which would operate one of the largest flight kitchens in the world at the airport.

This MOA is valid for a period of six months from Oct 17, 2017 (unless mutually terminated earlier or extended by both parties), during which both THY and SATS are allowed to evaluate the opportunities leading up to the execution of the definitive agreements and the conclusion of the transaction.