Sats buys 42% of Indonesian company in same industry

FOOD solutions and gateway services group Sats said on Wednesday that it is buying 41.65 per cent of an Indonesian company in the same industry.

The purchase of the stake in PT Cardig Aero Services (CAS) will cost about 1.108 trillion rupiah. (S$129 million)

"The transaction is in line with Sats' strategy to grow its food and gateway businesses by accessing value-creating opportunities," it said in an announcement.

"CAS, a leader in food solutions and gateway services, has presence in 17 airports across Indonesia. It is focussed on the same core business as Sats."

Sats said that Indonesia is a priority market.

"The country's topography as an island nation - which makes air travel the most reliable and efficient mode of transportation for both people and cargo across the archipelago - and its fast growing economy and middle class population will continue to drive greater demand for high quality, safe food and travel."

CAS is listed on the Indonesia Stock Exchange.

Based on the average price of the CAS shares transacted on Tuesday, the open market value of the shares that Sats is buying, is about 738.3 billion rupiah.

Sats is paying an implied premium of 50.1 per cent over the one-day average price, it said in presentation slides posted to the Singapore Exchange.