Shareholders of airline ground handler and food catering services provider Sats have approved the company’s plan to acquire global cargo handler Worldwide Flight Services for a EUR 1.2 billion ($1.7 billion).
The proposed acquisition, if completed, will make Sats the largest cargo handler in the world.
At an extraordinary general meeting (EGM) held on Jan 18, 96.8% of the total number of votes were in favour of the resolution to approve the transaction.
With this, the proposed acquisition is now subject to regulatory approvals, with the transaction expected to be completed in March or April.
Sats earlier announced that the proposed acquisition will be funded by a funding plan of $1.8 billion.
This plan will consist of $800 million in a renounceable underwritten rights issue, a $700 million term loan, and $320 million from the company’s existing cash.
The company says the terms and timing of the proposed rights issue will be determined by Sats in agreement with its underwriters, and published at the appropriate time.
In an 18 Jan presentation, Sats says its board of directors will vote in favour of the transaction, and intend to exercise their pro rata entitlements to the proposed rights issue in full.
Meanwhile, controlling stakeholder Venezio Investments - an indirect wholly-owned subsidiary of state investor Temasek - has also indicated its intention to subscribe for its pro rata entitlement to the proposed rights issue, subject to the finalised terms of the proposed rights issue being finalised. Temasek, via Venezio, holds a 39.68% stake in Sats.
Sats president and CEO Kerry Mok says that the company is “delighted and humbled” with the vote, adding that “we will be better positioned to provide our global customer base with end-to-end solutions, while securing a pathway to profitable growth and uplifting our home-market base in Singapore.”
Shares of Sats closed at $2.94 on 18 Jan, up two cents or 0.68% higher than its previous close.
