SATS divests stake in Malaysian in-flight caterer for RM10m
FOOD solutions and gateway services provider SATS : S58 0% is divesting its 49 per cent interest in Brahim’s SATS Investment Holdings (BSIH) to Dewina Brahim’s Holdings for RM10 million or some S$3.2 million.
BSIH holds a 70 per cent interest in Malaysian in-flight caterer Brahim’s SATS Food Services (BSFS), with the remaining 30 per cent interest held by Malaysian Airlines.
Malaysia-based investment company Brahim’s Holdings, which delisted from the Bursa Malaysia in June 2022, owns the remaining 51 per cent stake in BSIH.
In a bourse filing on Wednesday (Jul 13), SATS said the decision to sell its BSIH shares was made “following a comprehensive review of the current market position and challenging operating circumstances of BSFS, and the strategic value and financial significance of BSFS to the company”.
As at Mar 31, sale shares of BSIH amounted to an attributable unaudited book value and net tangible asset value of about negative RM47.7 million. Based on SATS’ annual report for FY2021 to FY2022, the cost of investment for BSIH shares held by the group’s investing unit SATS Investments is S$49.1 million as at end-March.
The sale transaction is slated for completion within 60 days from the date of SATS’ share purchase agreement, which was entered into with Dewina Brahim’s and Brahim’s Holdings on Jul 12.
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It is not expected to have a material impact on SATS’ net tangible assets nor consolidated earnings per share for the current financial year.
Shares of SATS were trading S$0.02 or 0.5 per cent lower at S$4.01 as at 1.35 pm on Tuesday, after the announcement was made.
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