It will focus its efforts on its airline catering and ground handling services.
In-flight catering services provider SATS has divested its 51% stake in its indirect subsidiary Food and Allied Support Services Corporation (FASSCO) by SIPL to Planet Foods for $1.02m, an announcement revealed.
FASSCO, which is based in the UAE, is a joint venture (JV) between SATS Investment (SIPL) and Planet Foods, which owns 51% and 49%, respectively. It provides healthcare food and nutrition, remote site catering and integrated facilities management.
According to a filing with the Singapore Exchange (SGX), SATS noted that is focusing all resources on executing its strategy to consolidate its leadership in airline catering and ground handling, and to supply the growing food service chains in Asia’s large cities. “The proposed transaction is a disposal of a business that is not in line with this strategy,” the firm explained.
Pursuant to the sale and purchase agreement, Planet will purchase 2.81 million ordinary shares in the share capital of FASSCO. Upon completion of the proposed transaction, FASSCO will cease to be a subsidiary of SIPL, and an indirect subsidiary of SATS.
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