KUALA LUMPUR (Oct 30): AirAsia Bhd has formalised a joint venture partnership with SATS Ltd, a provider of gateway services and food solutions, via share swap and sale agreements.
According to AirAsia’s bourse filing, the share swap will be carried out between its wholly-owned subsidiary, Ground Team Red Sdn Bhd (GTR) and its other subsidiary, Ground Team Red Holdings Sdn Bhd (GTRH), transferring 98% shares in the former in exchange for 88.6% of the latter.
Contemporaneously, GTRH will acquire an 80% equity stake in SATS Ground Services Pte Ltd (SGSS), in exchange for 11.4% equity stake in GTRH.
The share sale agreement comes into place when AirAsia sells 38.6% of its shareholding in GTRH to SATS.
In short, under terms of the partnership, SATS will acquire a 50% interest GTRH, in exchange for SATS' 80% stake in SATS Ground Services Singapore Pte Ltd (SGSS), and an aggregate cash consideration amounting S$119.3 million (equivalent to RM372.2 million).
As a result, AirAsia will effectively hold a 51% stake in GTR, and 40% of SGSS, while SATS will own the remaining.
The 50-50 joint venture will see GTRH be renamed as SATS Ground Team Red Holdings Sdn Bhd, which will hold stakes in both the Malaysia and Singapore subsidiaries, that is GTR and SGSS respectively.
SGSS was formed by SATS as a new ground handling entity to serve customers at Changi Airport’s new Terminal Four.