SATS purchase of Singapore Cruise Centre viewed as "mildly positive"
Only minor impact on earnings expected.
SATS announced that its subsidiaries have entered into a S&P agreement to acquire Singapore Cruise Centre Pte. Ltd (SCCPL) for an aggregate consideration of S$110m.
"We view this “bolt-on” acquisition to be mildly positive, given its immediate accretion to earnings," said DBS Group.
"But, this is offset by the minor impact on earnings and the uncertainty post the licence expiry 14 years later in 2027. Our back-of-the-envelope calculation suggests that the accretion to our TP is insignificant, at just less than 1% or just 3 Scts/share," it added.