SATS divests 49% stake in Saudi Arabia unit for $51.7m

The divestment is part of its expansion in Saudi Arabia’s aviation and logistics sector.

SATS announced the disposal of a 49% stake in its unit, SATS Saudi Arabia, to Avilog Logistics Services Company (Avilog) for $51.7m as part of its expansion in Saudi Arabia’s growing aviation and logistics sector.

Avilog is a joint venture formed by Albawardi Holding Group (ABG) and Abdulkadir Al Muhaidib and Sons Company (AMG).

ABG’s logistics infrastructure offers substantial international transport operations that span Saudi Arabia. Its integrated network also includes marine survey services and warehousing facilities. Meanwhile, AMG’s nationwide distribution network enables significant operational scale.

In a bourse filing, SATS said that the partnership will “allow SATS SA to strengthen its service offerings to airline customers across the Kingdom.”

SATS SA currently operates in Dammam, Riyadh, and Jeddah, serving 27 airline customers.

“The partnership advances SATS SA's expansion plans, particularly the development of its new cargo facility in Jeddah, with ABG and AMG’s established business network enabling SATS SA to strengthen its air cargo handling capabilities and expand into multi-modal operations across the region,” SATS said.