Sats says its wholly-owned subsidiary, Sats Airport Services, has entered into a share and purchase agreement with Avilog Logistics Services Company (Avilog) for the disposal of 49% of its shares in Sats Saudi Arabia Company.
The agreement has a purchase consideration of SAR147 million, or approximately $51.7 million.
As at Sept 30, the book value and net tangible asset value attributable to the sale shares are approximately $21.1 million and $20.8 million, respectively.
According to the group, the disposal will be a “strategic move” for Sats to capitalise on market opportunities in Saudi Arabia and the current favourable market conditions.
Through its partnership with Avilog, the group adds that Sats Saudi Arabia will utilise its “local expertise to improve market effectiveness and expand logistics services”. The disposal is expected to accelerate growth, while boosting air cargo and multi-modal operations.
The proposed disposal is not expected to have any material impact on the group’s net tangible assets (NTA) per share or earnings per share for the current financial year ending March 31, 2025.
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Shares in Sats closed 2 cents higher, or up 0.52%, at $3.86 on Nov 25.
