The airline food caterer is proposing a large acquisition that will allow it to leapfrog into the global league. The post SATS Share Price Tumbles Amid S$1.64 Billion Acquisition: 5 Things Investors Need to Know appeared first on The Smart Investor.
Singapore-based ground handling and catering provider SATS Ltd is acquiring Paris-based Worldwide Flight Services (WFS) for 1.19 billion euros ($1.14 billion) cash in its largest ever deal, to create the world's biggest global air cargo handler. SATS said the transaction values WFS at an enterprise value of 2.25 billion euros and it would raise S$1.7 billion in equity to fund the purchase.
Singapore-based ground handling services firm SATS Ltd said on Wednesday it is in talks to buy Paris-based air cargo logistics company Worldwide Flight Services (WFS). Bloomberg News had reported earlier in the day that SATS had sounded out financing for the potential deal, which could be for about $3 billion. The in-flight catering services provider, however, flagged that no definitive terms or formal legal documentation have been agreed upon, and that the report contained "materially inaccurate facts".