On Sept 29, the day after the deal was announced, SATS shares dropped by as much as 23.5% before ending the day at $3.07, down 20.67% for the day. At the depth of the pandemic in March 2020, SATS shares traded at $2.62.
SATS is barely recovering from the turbulence of the pandemic, but under president and CEO Kerry Mok, who took on the role just 10 months ago, the ground handler has worked up the appetite to make a “transformational” acquisition that may see it becoming a leading global player in this market.
On Sept 28, SATS announced the acquisition of Worldwide Flight Services (WFS) for EUR1.19 billion ($1.64 billion). However, the market did not take the news well, as worries over fundraising amid a down market and gloomy economic prospects prompted a selldown of the stock.
