SINGAPORE (Sept 29): Airline gateway services and food solutions provider SATS is selling its 30% stake in its inflight catering facility in India, Taj Madras Flight Kitchen, to Taj SATS Air Catering for 178.7 million rupees ($3.5 million).
SATS owns 49% of Taj SATS Air Catering, which is a joint venture between the company and Indian Hotels Company.
Following a corporate restructuring exercise, Taj SATS Air Catering intends to acquire 100% ownership of Taj Madras Flight Kitchen from all its shareholders.
The group says the restructuring aims to simplify the existing shareholding structures of Taj SATS Air Catering and Taj Madras Flight Kitchen to achieve better operational and management synergies, and to reduce duplication of compliance and regulatory costs.
The consideration was arrived on an arm’s length and willing buyer-willing seller basis, taking into account a fair valuation dated July 17, conducted by SSPA & Co, Chartered Accountants, as commissioned by Taj SATS Air Catering.
Based on SATS management accounts as at end- August, the book value and net tangible asset value of the sale shares are $2.8 million each.
The company says the completion of the proposed transaction will not impact its net tangible assets per share and consolidated earnings per share for the current financial year.
Shares in SATS closed flat at $4.82 on Friday.
