SIA, Sats, DFASS investing $35m for shares in KrisShop

Singapore Airlines (SIA), ground handler Sats and duty-free retailer DFASS will invest around $35 million for shares in travel retail joint venture KrisShop.

The three companies first announced they were setting up KrisShop - previously known as Singapore Airport Duty-Free Emporium - in March.

KrisShop will offer in-flight and ground-based duty-free and duty-paid goods.

SIA holds about 76 per cent of the joint venture's issued share capital with Sats holding the remaining 24 per cent.

Under the agreement, SIA will subscribe for about 2.34 million shares in KrisShop, while Sats will subscribe for one share and DFASS for about 1.56 million.

Upon completion, SIA will hold about a 70 per cent stake in the joint venture, while Sats and DFASS will each hold about 15 per cent.

SIA will pay $24.9 million for its subscription shares; Sats will shell out $5.27 million; and DFASS, $5.48 million.

  • 70%

    Singapore Airlines' stake in the retail joint venture.

    15%

    What Sats and DFASS will each hold.

In the March announcement, the companies said the proposed joint venture will be able to build a valuable business over time by offering targeted products and services, due to SIA's customer base of 30 million passengers a year, Sats' expertise and the supplier network built by DFASS.

A version of this article appeared in the print edition of The Straits Times on November 24, 2018, with the headline 'SIA, Sats, DFASS investing $35m for shares in KrisShop'. Print Edition | Subscribe