- POSTED: 12 May 2014 19:25
- UPDATED: 12 May 2014 22:15
Airport and cruise terminal services provider SATS has pulled out from acquiring Singapore Cruise Centre from investment company Temasek Holdings.
SINGAPORE: Airport and cruise terminal services provider SATS has pulled out from acquiring Singapore Cruise Centre from investment company Temasek Holdings.
In a statement on Monday, SATS said that its subsidiaries, SATS Airport Services and SATS-Creuers Cruise Services will not proceed with the acquisition "due to market developments in Asia."
SATS CEO Alex Hungate said in the statement that "this announcement does not in any way alter SATS' commitment to grow our successful operations at the Marina Bay Cruise Centre and to promote Singapore as a homeport, nor our ambition to pursue regional cruise opportunities."
SATS announced plans to buy Singapore Cruise Centre for S$110 million last September.
The move was aimed at riding the waves of the growing cruise industry in the Asia-Pacific region.
Singapore Cruise Centre owns the international cruise and regional ferry terminal at HarbourFront Centre as well as the Tanah Merah and Pasir Panjang ferry terminals.
Some analysts said the prospects of the cruise industry remain limited in Singapore.
Voyage Research chief executive officer Roger Tan said: "The initial excitement in the cruise industry has fizzled out and reality has struck."
He added: "I think Southeast Asia offers very little value in terms of on-shore attractions and also foreign cruise operators lack the will to want to customise service towards Asian tourists. These two factors makes cruise development in this region very limited."