SATS Investments Pte. Ltd (SIPL), the wholly-owned subsidiary of SGX-listed SATS, has entered into a share purchase agreement (SPA) with Dewina Brahim’s Holdings and Brahim’s Holdings for the sale of its 49% stake in Brahim’s SATS Investment Holdings.
The SPA, which was signed on July 12, will see Dewina purchasing 490,000 shares representing a stake of 49% in the capital of Brahim’s SATS Investment Holdings, for a cash consideration of RM10.0 million ($3.2 million).
As at March 31, the unaudited book value and net tangible asset (NTA) value attributable to the sale shares were estimated to be -RM47.7 million (or a loss of $15.1 million).
The completion of the proposed transaction will take place within 60 days from the signing of the SPA. The consideration was arrived at on an arm’s length and willing buyer-willing seller basis.
The remaining 51% in Brahim’s SATS Investment Holdings is held by Brahim’s Holdings.
Brahim’s SATS Investment Holdings has a 70% interest in Brahim’s SATS Food Services Sdn Bhd. The remaining 30% interest in the latter is held by Malaysian Airlines Berhad.
According to the bourse filing by SATS, the proposed transaction was made after a “comprehensive review” of Brahim’s SATS Food Services and the “strategic value and financial significance” of Brahim’s SATS Food Services to SATS.
In October 2015, Brahim’s Holdings accepted SATS’s offer to buy its 49% stake in Brahim’s Airline Catering Holdings Sdn Bhd for RM218 million.
As at 2.16pm, shares in SATS are trading 1 cent lower or 0.25% down at $4.02.