SATS completes buyout of Oman Air Cargo stake for $23.4m

SATS has a total of 33% interest.

In an SGX filing SATS announced that Oman Air cargo handling unit was finally transferred to Oman Air Cargo LLC (JVCo).

With effect from 16 November 2016, SATS' wholly owned subsidiary, SATS Investments Pte Ltd (SIPL) has acquired 33% of the share capital of the JVCo, at a purchase consideration of OMR 6,369,000 (S23.4m) in cash (as announced earlier).

SATS has entered into a joint venture agreement with Oman Air S.A.O.C. in relation to a cargo handling joint venture last March.

A total of 570,629 shares of OMR 1 each (instead of the 165,000 shares announced earlier) of the JVCo were acquired from Oman Air.

The JVCo will be renamed Oman Air SATS Cargo LLC (instead of Oman SATS Cargo LLC, as announced earlier).

The transaction is not expected to have any material impact on SAT’s net tangible assets per share and consolidated earnings per share for the current financial year.