SATS Ltd. (SATS) has announced that Hong Kong Airlines Limited (Hong Kong Airlines) – the second base carrier at HKIA – is to engage SATS HK Limited (SATS HK) and Asia Airfreight Terminal Company Limited (AAT) to handle ramp and cargo services respectively.
At the same time, SATS has entered into sale and share purchase agreements with Hong Kong Airlines, through the airline’s wholly-owned subsidiaries Voltaire Capital Investment Limited (VCIL) and Holistic Capital Investment Limited (HCIL). These agreements are in relation to the sale of issued shares of SATS’ wholly-owned subsidiary SATS HK and associate AAT. SATS HK provides ramp and passenger handling services at HKIA, while AAT provides cargo handling services.
SATS will be divesting a 51 per cent stake in SATS HK to VCIL. SATS HK will capitalise existing loans from SATS to pay for new shares. These shares will be issued to SATS. After which, SATS will sell to VCIL 51 per cent of the enlarged issued share capital of SATS HK at a sale consideration of HK$76.5m (approximately S$13.8m), to be satisfied in cash. With this sale, SATS will now hold a 49 per cent shareholding in SATS HK.
SATS will also be selling four per cent of the issued shares of AAT to HCIL, at a sale consideration of HK$100m (approximately S$18.1m), to be satisfied in cash. In addition, other shareholders of AAT have also entered into similar sale and share purchase agreements to sell a total of 31 per cent of their shareholding in AAT. Upon completion of the agreements, SATS will remain the largest shareholder with a 45 per cent stake in AAT while HCIL will become the second largest shareholder with 35 per cent shareholding. The third shareholder Eastern Option Limited will continue to hold its existing 20 per cent stake in AAT.