LISTED aviation services provider MacroAsia Corp. will cut by 13% its stake in its in-flight catering subsidiary via the sale of the shares to its Singapore-based partner SATS, Ltd.
As a result, SATS’ shareholding in MACS will increase to 33% from 20%. Payment was P168.8 million in initial cash plus a potential earn-out consideration. The deal is targeted for closure by Aug. 31.
MacroAsia had acquired an additional 13% stake in MACS through a P36.4-million sale and purchase agreement with Compass Group International BV in 2006.
“The Transaction today effectively reverts the shareholding of MAC in MACS to 67%, its original stake when MACS started operations in 1998,” the disclosure read.
“The transaction today is a strategic move to further strengthen the partnership and relationship of SATS and MacroAsia Corporation in their food services venture in the Philippines.”
Both companies formed another joint venture (JV) firm, MacroAsia SATS Food Industries Corp., as a MACS subsidiary. They are investing P300 million for a new food commissary located in Sucat, Muntinlupa City to serve institutional clients like hotels, casinos, and call centers.
“This transaction will serve as further impetus for SATS to strengthen its support for the growth of the JV’s food business in the Philippines,” MacroAsia said.
MACS operates a two-hectare facility inisde the Ninoy Aquino International Airport and the new Muntinlupa facility will also complement the existing in-flight kitchen.
MacroAsia has a 60% market share among airlines in NAIA, including Singapore Airlines, Emirates, Etihad, Dragon Air, Cathay Pacific, Japan Airlines, All Nippon, Saudia, Qantas, Qatar, China Airlines, Air Niugini, Korean Air and other chartered flights.
SATS, or Singapore Air Terminal Services, is listed on the main board of the Singapore Exchange. The firm has been providing aviation services for 65 years and the two have been partners since 1998, when MACS started operations.