SATS in talks to buy Worldwide Flight Services; no definitive terms reached

SATS is in discussions to acquire air cargo handler Worldwide Flight Services but no definitive terms or formal legal documentation, including the purchase consideration, have been agreed upon, the company said on Wednesday (Sep 21) in a bourse filing.

The mainboard-listed inflight caterer and ground handler called for a trading halt earlier in the day following a Bloomberg report, based on sources, of a potential acquisition for as much as US$3 billion.

SATS has sounded out financing for the potential purchase of Worldwide Flight Services from its private equity owner Cerberus Capital Management, the report said.

SATS said on Wednesday there is no certainty a transaction will materialise. “One of SATS’s strategic priorities is to expand our network and capabilities in Asia and across the globe, and we are therefore constantly on the lookout for acquisition opportunities,” it said.

Cerberus bought Paris-based Worldwide Flight Services in 2018 for about 1.2 billion euros (S$1.68 billion). The company had annual revenues of more than 1.2 billion euros when the deal was announced.

Founded in 1971, Worldwide Flight Services operates in more than 160 major airports in over 20 countries, said its website.

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Shares of SATS last traded at S$4.09 on Wednesday, up S$0.03 or 0.7 per cent.