SATS will roll out $11.4m for its stake.
Through its subsidiary Asia-Pacific Star Private, SATS has partnered with DFASS to set up a 50:50 travel retail joint venture in Singapore.
According to SATS’ media release, the JV will be called DFASS SATS. It will provide inflight duty-free and duty-paid sales, offer mail order and pre-order service, supply liquor for inflight pouring services, and operate ground-based duty free and duty-paid retail sales in Singapore.
Per the deal’s conditions, DFASS will transfer assets including merchandise inventories and point-of-sale devices to DFASS SATS in exchange for ordinary shares in the company. Meanwhile, SATS will match the value of DFASS’ assets by injecting around $11.4 in cash for its stake in DFASS SATS.
SATS will provide bar-cart packing, warehousing, and cabin loading services while DFASS will continue to drive the airline and ground retail programme management including merchandising and sourcing, as well as the procurement and supply of the selling merchandise.
Additionally, the JV will use DFASS’ equipment, backoffice, and e-commerce solution. With SATS’ ground presence, DFASS SATS will be able to extend its reach to more passenger touchpoints.
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