However, investors seemed to worry that the acquisition will require a dilutive call on capital. This sent the share price plunging the following day from $3.87 to $3.07 on Sept 29.
Sats has given better clarity on how it plans to fund what it calls the “transformational opportunity” of bringing Worldwide Flight Services (WFS) under its wings. At its 1HFY2023 ended September results briefing on Nov 9, Sats said that the acquisition will cost $1.8 billion, and will be funded by a rights issue of not more than $800 million, term loans of about $700 million, and $320 million from internal cash resources.
In its Sept 28 announcement, Sats says that through cross-selling, network expansion and deeper e-commerce cargo partnerships, the combined entity is expected to capture meaningful run-rate ebitda synergies above $100 million.
