Keppel Telecommunications & Transportation (KT&T) is selling its 10 per cent stake in Asia Airfreight Terminal Company (AAT) for HK$250 million (S$45 million) to Holistic Capital Investment, a subsidiary of Hong Kong Airlines.
Other existing shareholders of AAT, including Torres Investments and Sats, have separately agreed to sell 90 million shares - representing a 25 per cent stake in AAT - for HK$625 million to the same buyer.
Asia Airfreight Terminal is an air cargo terminal based in Hong Kong International Airport. It offers airlines a range of services, from physical cargo handling to documentation processing.
Sats will remain the largest shareholder with a 45 per cent stake in AAT while Holistic Capital Investment will become the second-largest shareholder with a 35 per cent stake.
Hong Kong Airlines - the second base carrier at Hong Kong International Airport - will engage Sats HK and AAT.
Sats HK provides ramp and passenger handling services while AAT provides cargo-handling services.
Singapore-listed Sats will also be selling a 51 per cent stake in Sats HK to Voltaire Capital Investment, Hong Kong Airlines' wholly owned unit, for HK$76.5 million.
Sats HK will capitalise existing loans from Sats to pay for new shares. These shares will be issued to Sats.
Sats will then sell to Voltaire Capital Investment 51 per cent of the enlarged issued share capital of Sats HK. With this sale, Sats will hold a 49 per cent stake in Sats HK.
Former nightlife entertainment behemoth LifeBrandz remained in the red in the second quarter, logging a net loss of $282,000. It recorded a net loss of $366,000 in the same quarter a year earlier.
Revenue for the three months ended Jan 31 was $231,000, a 24 per cent slide over the preceding year. The company said sales at Mulligan's Pattaya were slow due to a decline in tourist arrivals and patronage.
Loss per share for the quarter was 0.01 cent, the same as a year earlier. Net asset value per share was negative 0.02 cent as at Jan 31.