SINGAPORE - In-flight catering services provider Sats on Tuesday (July 9) said it has divested its 51 per cent stake in its indirect unit Food and Allied Support Services Corporation (FASSCO) to Planet Foods for $1.02 million.
FASSCO is a joint venture (JV) between Sats subsidiary Sats Investment and Planet Food, which owns a 49 per cent stake. Based in the United Arab Emirates (UAE), the JV specialises in healthcare food and nutrition, remote site catering and integrated facilities management.
Following the divestment, FASSCO will no longer be a subsidiary of Sats Investment.
Sats said that it is focusing all resources on consolidating its leadership in the airline catering and ground handling space, as well as supplying the growing food service chains in large cities in Asia. It added that the transaction is a disposal of a business "not in line with this strategy".
Sats shares closed at $5.29 on Tuesday cum dividend, down eight cents or 1.49 per cent before the announcement.