The unit will serve as a centre of excellence for large-scale fresh frozen production in the group&rsquo s food solutions network

 

CATERING and ground handling company Sats has acquired the remaining 15 per cent stake in Sats Food Solutions (Thailand) (SFST) from Bangkok Ranch for about S$3.4 million.

 

In a bourse filing on Friday (Jan 31), Sats announced that the acquisition builds on the initial 85 per cent stake acquired in June 2021, giving the company total ownership of SFST. 

 

The ground has been broken for SFST&rsquo s new facility in Pathum Thani, Thailand, which will span about 35,000 square metres across three buildings. When completed, SFST&rsquo s production capacity will increase to 108,000 fresh frozen meals daily.

 

SFST will serve as a centre of excellence for large-scale fresh frozen production in Sats&rsquo food solutions network.

 

The transaction is also key to Sats&rsquo strategic partnership with Mitsui announced in July 2024. Mitsui will take a 15 per cent stake in SFST, deepening collaboration between Sats and itself.

 

&ldquo This milestone with SFST gives us the agility to fully capitalise on our expanded operational scale and drive our partnership with Mitsui,&rdquo said Stanley Goh, chief executive officer, food solutions, Sats.

 

The acquisition is not expected to have a material impact on Sats&rsquo net tangible assets per share or consolidated earnings per share for the current financial year ending Mar 31.

The India flag carrier also renews 11 contracts with the Sats group following a global tendering process

 

IN-FLIGHT caterer and ground handler Sats and its wholly owned subsidiary Worldwide Flight Services (WFS) have been awarded 14 new contracts from India flag carrier Air India in major airports around the world, the group said in a bourse filing on Thursday (Jan 9).

 

The Sats group landed these contracts in a global tendering process, which also saw Air India renew 11 existing contracts with Sats and WFS.

 

The new cargo handling and ground handling stations are in North America, the United Kingdom, Europe and Asia, &ldquo significantly&rdquo expanding Air India&rsquo s partnership with Sats and WFS, the group noted.

 

They include, but are not limited to, stations such as Chicago, Washington Dulles, London Heathrow, London Gatwick, Birmingham, Frankfurt, Milan, Kuala Lumpur and Hong Kong.

 

Bob Chi, chief executive officer of Sat&rsquo s Asia-Pacific Gateway Services, said: &ldquo Our extensive capabilities and global network, along with the exceptional service our teams provide, uniquely position us to offer unparalleled international coverage to our airline partners.

 

&ldquo We highly value our partnership with Air India and are excited to represent the airline at these locations.&rdquo

 

Sat&rsquo s Gateway Services provides airfreight and ground handling services, which include passenger services, ramp and baggage handling, aviation security services, aircraft cleaning and aviation laundry.

 

Ramesh Mamidala, head of cargo at Air India, said streamlining Air India&rsquo s logistics processes and enhancing service levels across passengers and cargo were key to the airline&rsquo s ongoing transformation.

 

&ldquo By strengthening our partnership with Sats and WFS, we look forward to delivering a world-class operation for our customers around the world.&rdquo

The mainboard-listed company will continue to hold a majority interest, with the remaining stake to be acquired by a privately held company

 

IN-FLIGHT caterer and ground handler Sats : S58 +0.52% intends to divest 49 per cent of its interest in its Saudi Arabia cargo-handling subsidiary for S$52.6 million to a private limited company incorporated in the kingdom.

 

Mainboard-listed Sats and its wholly owned subsidiary Sats Airport Services (SAS) on Monday (Nov 25) entered into a share purchase agreement with Avilog Logistics Services &ndash owned by a consortium of shareholders Albawardi Holding Group and Abdulkadir Al Muhaidib and Sons.

 

After the restructuring, Sats will continue to hold 51 per cent of the issued share capital of its Saudi Arabia unit, with the remaining 49 per cent acquired by Avilog. SAS will no longer be a shareholder of the Saudi Arabian subsidiary.

 

Describing the transaction as &ldquo a strategic move (to) capitalise on market opportunities in Saudi Arabia and present favourable market conditions&rdquo , Sats said the local expertise will help the unit improve its market effectiveness and expand logistics services.

 

&ldquo The combined resources will accelerate growth, starting with a new Jeddah facility, while enhancing air cargo and multimodal operations,&rdquo it added.

 

The group noted that Saudi Arabia expects substantial growth in passenger traffic and cargo handling by 2030, and that its local unit&rsquo s growth aligns with Vision 2030 &ndash a government programme that aims to turn the kingdom into a global logistics hub.

 

Sats and SAS may also receive an additional cash payment of up to S$70.2 million, said the bourse filing.

 

But the contracting parties must reach an agreement on the Saudi Arabia subsidiary&rsquo s earnings before interest, taxes, depreciation and amortisation for the fiscal year ending Mar 31, 2027.

 

The Saudi Arabia unit must also achieve its agreed performance objectives as per the terms specified in the agreement.

 

The book and net tangible asset values of the sale shares are about S$21.1 million and S$20.8 million, respectively, based on the unaudited consolidated financial statements of the group for the financial period ended Sep 30.