At the time, concerns centred on valuation and execution risk. The WFS purchase price represented about 56% of Sats’ market capitalisation in 2022, raising questions about balance-sheet strain and shareholder dilution.
When Sats Group announced plans in late 2022 to acquire global cargo handler Worldwide Flight Services (WFS), the market’s initial reaction was swift and unforgiving. Shares of the Singapore-listed ground handler and in-flight catering group tumbled more than 20% on the same day, amid fears the US$1.7 billion ($2.16 billion) deal would be funded entirely through equity.
A week later, the group’s management quelled fears by clarifying that the acquisition would be financed through an $800 million rights issue, a $700 million term loan and approximately $320 million in cash.
