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SATS to sell 30% stake in Taj Madras Flight Kitchen for S$3.5m
GROUND handler and caterer SATS will be selling its 30 per cent stake in Taj Madras Flight Kitchen to Taj SATS Air Catering, its joint-venture catering business in India, for a cash consideration of 178.74 million rupees (S$3.5 million).
SATS owns 49 per cent of Taj SATS Air Catering Limited and 30 per cent of the total issued shares in the capital of Taj Madras Flight Kitchen, which is its inflight catering facility in India.
Following a corporate restructuring exercise, Taj SATS Air Catering intends to acquire 100 per cent ownership of Taj Madras Flight Kitchen from all of its stakeholders.
The consideration sum of 178.74 million rupees took into account a fair valuation dated July 17 2019, conducted by SSPA & Co, Chartered Accountants, as commissioned by Taj SATS Air Catering.
The restructuring is intended to simplify the existing shareholding structure of Taj SATS Air Catering and Taj Madras Flight Kitchen with the aim to "achieve better operational and management synergies, and to reduce duplication of compliance and regulatory costs".
Based on SATS' management accounts as at Aug 31, the book value and net tangible asset value of the sale shares are S$2.8 million each. Completion of the proposed transaction will not impact the company's net tangible assets per share and consolidated earnings per share for the current financial year.