SATS share price fall 1.70% after it announces divestment of healthcare-food business
Following the divestment, Food and Allied Support Services Corporation will no longer be a subsidiary of SATS Investment.
In-flight food caterer SATS on Tuesday saw its shares sink 1.70% after it said it has divested its 51% stake in Food and Allied Support Services Corporation (FASSCO) to Planet Foods for S$1.02 million.
The healthcare-food business is a joint venture between SATS’ wholly-owned subsidiary SATS Investment and Planet Foods.
Following the divestment, FASSCO will no longer be a subsidiary of SATS Investment.
SATS share price down 1.70%
Shares of SATS fell by nine Singapore cents to S$5.20 as of 3.10pm Singapore time on Wednesday.
Prior to the announcement, SATS’ shares closed lower on Tuesday, down by eight Singapore cents or 1.49%, at S$5.29.
Year-to-date, the firm’s shares have risen by 11.8%, from S$4.65 on January 2, 2019.
Healthcare-food business not in line with company strategy
Providing an explanation to its decision, SATS said it is focusing on all its resources to maintain its lead in the airline catering and ground handling space, as well as supplying the growing food service chains in large cities in Asia.
‘The proposed transaction is a disposal of a business that is not in line with this strategy’, it added.
The firm said the divestment is not expected to have any material impact on the company’s net tangible assets per share and consolidated earnings per share for the current financial year.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
