- POSTED: 19 Feb 2014 23:38
SATS is acquiring a 41.65% stake in its Indonesian counterpart PT Cardig Aero Services Tbk (CAS) for S$118.3 million.
SINGAPORE: Airport gateway services firm SATS is acquiring a 41.65 per cent stake in its Indonesian counterpart PT Cardig Aero Services Tbk (CAS) for S$118.3 million.
SATS said the move is in line with its strategy to grow its food and gateway businesses.
CAS is a food solutions and gateway services company which focuses on the same core business as SATS.
It has a presence across 17 airports in Indonesia.
SATS added that this provides a good opportunity for expansion and to tap into Indonesia's fast growing economy.
SATS already has a strong partnership with CAS through its joint venture PT Jasa Angkasa Semesta.
President and CEO of SATS, Alexander Hungate, said this new acquisition will bring new opportunities for connectivity for both parties' customers across the region.
With this new acquisition, the pro-forma consolidated earnings of SATS for the financial year ended on 31 March 2013 is expected to increase from S$184.8 million to S$184.9 million.