With Sats holding more than 90 per cent of the food manufacturer and supplier, SFI informed the Singapore Exchange on Monday that it will suspend trading of its shares at 5.30pm on March 9.

Those still hanging on to SFI shares have until then to sell.

The offer is 93 cents a share - the same price Sats paid Ambrosia Investment, a wholly owned unit of Temasek Holdings, to take over its 70 per cent of SFI.

That was in January. Last month, Sats made a similar offer to SFI minority shareholders.

Now that the company has more than 90 per cent stake, SFI is likely to be delisted. When that happens, minority shareholders will find it tough to sell their shares after that.

Under company rules, if Sats manages to acquire about 96 per cent of the company, other shareholders will have no choice but to sell.

The successful acquisition of SFI is an important milestone for the Singapore Airlines ground-handling and catering arm.

Sats, which today earns almost all its revenue from aviation, aims to reduce that reliance to just 55 per cent, with a 100 per cent SFI takeover. The company has said repeatedly that this would ensure a more balanced portfolio.

Annual cost savings of up to $15.5 million are also expected from integrating the two businesses - through greater efficiency in purchasing food, for example.