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Sats unit in JV for subscription for 49% stake in Mumbai Cargo Service Center

MAINBOARD-LISTED Sats on Wednesday announced that its wholly owned subsidiary struck a joint venture (JV) for the subscription of a 49 per cent stake in Mumbai Cargo Service Center Airport Private Limited (MCSC) on Dec 26.

The subsidiary - Sats Investments II - had agreed to a joint venture with Cargo Service Center India Private Limited (CSC), which wholly owns MCSC.

The JV will see Sats subscribe to 1.4 million new ordinary shares of MCSC for 49 million rupees (S$1.03 million) while CSC has subscribed for approximately 1.46 million new ordinary shares worth 50.9 million rupees in cash.

In addition, Sats subscribed for 730.2 million rupees of compulsorily convertible debentures in MCSC, the groundhandler said in a filing with the Singapore Exchange after the market closed.

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Meanwhile, CSC subscribed for a further 760 million rupees worth of new ordinary shares which will be satisfied through the transfer of CSC's existing general cargo export management business in Mumbai to MCSC.

CSC's existing business in Mumbai is expected to be fully transfered to MCSC by Dec 31, 2018.

Sats shares closed at S$5.24 on Wednesday.