SINGAPORE - In-flight caterer and ground handler Sats has sold its ground handler unit Maytag Aircraft for an enterprise value of US$46 million (S$61.55 million) to private direct investment firm Albion River, it announced in a bourse filing on March 16.
Maytag provides aircraft refuelling, fuel storage, base operations support, support, ground handling, and weather observation and forecasting services as a contractor for the US Department of Defence, at its United States and international military bases.
It was acquired by Worldwide Flight Services (WFS) in 2021, which was, in turn, acquired by Sats in 2023.
The buyer, Albion River, is a “private direct investment firm focused on acquiring companies that produce highly technical defence products and services”.
“Maytag operates on a standalone basis and outside of the group’s core businesses and competencies,” said Sats.
“The sale of Maytag is in line with Sats’ strategy, following the acquisition of the WFS Group, to streamline operations, leverage operational synergies and improve financial performance.”
Based on Sats’ unaudited financial information for the first half of 2024, which ended on Sept 30, 2023, Maytag has a book value of $76 million and a net tangible asset value of $24.7 million.
For illustrative purposes, Sats’ net tangible liabilities per share would have been 81 cents instead of 79.3 cents, had the sale been effected as at Sept 30, 2023.
Assuming the transactions had taken effect from April 1, 2023, the group’s loss per share for the first half of 2024 would have been 69 cents instead of 52 cents.
The company will be booking gain on disposal of about $1.6 million. Net proceeds from the sale, which was completed on March 15, will be approximately US$45.6 million. Maytag will also pay a dividend of US$3.2 million to Sats.
The funds will be used “to deleverage and/or expand the group’s existing core business”.
Sats chief financial officer Manfred Seah said: “This divestment is part of our efforts to rationalise our portfolio to concentrate on core businesses that have a strategic fit for the group, focusing on high-value segments that will drive sustainable growth.”
Sats closed down two cents, or 0.8 per cent, at $2.53, on March 18. THE BUSINESS TIMES
