Airport ground handler and catering service provider SATS has released an announcement clarifying a Sept 21 Bloomberg article, which stated that the company is in talks for a US$3 billion ($4.2 billion) purchase of cargo handler Worldwide Flight Services.
The Bloomberg reported cited "people with knowledge of the matter", adding that an announcement could come as soon as in the coming weeks should the parties reach an agreement.
Describing the article as having “materially inaccurate facts”, Sats explains that while it is in “ongoing discussions” regarding a potential acquisition of Worldwide Flight Services, no definitive terms or formal legal documentation, including the consideration for the deal have been agreed upon.
However, Sats does say that discussions concerning the transaction are “developing”, although there is no certainty that it will proceed or will materialise.
The company says that one of SATS’s strategic priorities is to expand its network and capabilities in Asia and across the globe, and “we are therefore constantly on the lookout for acquisition opportunities," assuring that it will make timely announcements of any further material developments.
SATS earlier requested its first trading halt since 2009 at 3.11 pm, with its share price standing at $4.09.
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