Buying Singapore Food would give Sats more food services contracts, including a deal to supply the city-state's army and operations in the UK. -- PHOTO: STEPHANIE YEOW
SINGAPORE Airport Terminal Services Ltd (Sats), the ground-handling unit of Singapore Airlines, said shareholdershave approved the purchase of Temasek Holdings Pte's 70 per cent stake in Singapore Food Industries Ltd.
Minority shareholders of Sats voted in favour of the deal on Tuesday, according to a company presentation after a meeting. Sats last month proposed to pay as S$334.5 millionfor Temasek's stake. It is offering as much as S$509.5 million for the whole of Singapore Food, reported Bloomberg news.
Buying Singapore Food would give Sats more food services contracts, including a deal to supply the city-state's army and operations in the UK. The acquisition will help shield Sats from a slowdown in flight catering and ground-handling as air travel declines amid a global recession.
Singapore Food gained 0.6 per cent to 92 cents on Monday, while Sats was unchanged at S$1.45 on Friday. Both companies requested for a suspension of trading in their shares on Monday.
