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SATS: Announced that it will sell its 40% equity interest in its Adel Abuljadayel Flight Catering Company joint venture for a cash consideration of US$18.4m (~S$23.4m), which is slightly below the book value of the asset as of 31 Mar (S$24.1m). Despite the short two-year tenure of the JV, the exit does not signal a change in management intent regarding the region. Management still intends to re-enter the Middle East, and will continue to pursue other attractive investment opportunities. In the interim, the outlook for SATS remains positive and we believe the counter’s earnings stability and healthy dividends will allow it to stay resilient amidst recent market volatility. OCBC maintains HOLD with an unchanged fair value of $3.15

(01-07-2013, 07:09 PM)Dividend Warrior Wrote: [ -> ]SATS: Announced that it will sell its 40% equity interest in its Adel Abuljadayel Flight Catering Company joint venture for a cash consideration of US$18.4m (~S$23.4m), which is slightly below the book value of the asset as of 31 Mar (S$24.1m). Despite the short two-year tenure of the JV, the exit does not signal a change in management intent regarding the region. Management still intends to re-enter the Middle East, and will continue to pursue other attractive investment opportunities. In the interim, the outlook for SATS remains positive and we believe the counter’s earnings stability and healthy dividends will allow it to stay resilient amidst recent market volatility. OCBC maintains HOLD with an unchanged fair value of $3.15

what are your personal thoughts on this news?

(02-07-2013, 07:48 AM)Drizzt Wrote: [ -> ]

(01-07-2013, 07:09 PM)Dividend Warrior Wrote: [ -> ]SATS: Announced that it will sell its 40% equity interest in its Adel Abuljadayel Flight Catering Company joint venture for a cash consideration of US$18.4m (~S$23.4m), which is slightly below the book value of the asset as of 31 Mar (S$24.1m). Despite the short two-year tenure of the JV, the exit does not signal a change in management intent regarding the region. Management still intends to re-enter the Middle East, and will continue to pursue other attractive investment opportunities. In the interim, the outlook for SATS remains positive and we believe the counter’s earnings stability and healthy dividends will allow it to stay resilient amidst recent market volatility. OCBC maintains HOLD with an unchanged fair value of $3.15

what are your personal thoughts on this news?

Possibly the arabs have cash and wants full control of the company now that they managed to set up the company and got the "know-how" from SATS.

In return maybe they will offer SATS something better in the future hopefully.

(02-07-2013, 11:19 AM)BlueKelah Wrote: [ -> ]

(02-07-2013, 07:48 AM)Drizzt Wrote: [ -> ]

(01-07-2013, 07:09 PM)Dividend Warrior Wrote: [ -> ]SATS: Announced that it will sell its 40% equity interest in its Adel Abuljadayel Flight Catering Company joint venture for a cash consideration of US$18.4m (~S$23.4m), which is slightly below the book value of the asset as of 31 Mar (S$24.1m). Despite the short two-year tenure of the JV, the exit does not signal a change in management intent regarding the region. Management still intends to re-enter the Middle East, and will continue to pursue other attractive investment opportunities. In the interim, the outlook for SATS remains positive and we believe the counter’s earnings stability and healthy dividends will allow it to stay resilient amidst recent market volatility. OCBC maintains HOLD with an unchanged fair value of $3.15

what are your personal thoughts on this news?

Possibly the arabs have cash and wants full control of the company now that they managed to set up the company and got the "know-how" from SATS.

In return maybe they will offer SATS something better in the future hopefully.

If the Arabs think the biz is good and want full control then imagine they had to pay a premium rather than securing it below cost? Would guess it's SATS that want out for some reason. A pity lost the only foothold in ME.

Result is out.

Result Presentation Slides

Very interesting transaction. I was under the impression that the Singapore Cruise Centre was built with public money- the way Changi Airport and the SMRT stations are built. And as such, logically it should classified as public infrastructure. So how is it that it can be sold to a private entity like SATS?

Even more interesting is the fact that SATS-Creuers has the license to operate the cruise terminal till 2027. So what happens if SATS-Creuers dun win the next operating license tender? Does the new operator (if SATS-Creuers dun win) has to pay SATS some cost in using the cruise terminal? Or is this a clever attempt by SATS to lock in and entrench their position as a cruise operator?

[EDIT] Sorry. I think I'm confusing between Singapore Cruise Centre (the infrastructure) and Singapore Cruise Centre (the terminal operator). The proposed acquisition is for the terminal operator and not the infrastructure. Sorry for the confusion.

(26-09-2013, 06:55 PM)lonewolf Wrote: [ -> ]Very interesting transaction. I was under the impression that the Singapore Cruise Centre was built with public money- the way Changi Airport and the SMRT stations are built. And as such, logically it should classified as public infrastructure. So how is it that it can be sold to a private entity like SATS?

Even more interesting is the fact that SATS-Creuers has the license to operate the cruise terminal till 2027. So what happens if SATS-Creuers dun win the next operating license tender? Does the new operator (if SATS-Creuers dun win) has to pay SATS some cost in using the cruise terminal? Or is this a clever attempt by SATS to lock in and entrench their position as a cruise operator?

[EDIT] Sorry. I think I'm confusing between Singapore Cruise Centre (the infrastructure) and Singapore Cruise Centre (the terminal operator). The proposed acquisition is for the terminal operator and not the infrastructure. Sorry for the confusion.

And the vendor of Singapore Cruise Centre is none other than Temasek.

The package includes the three ferry terminals

(26-09-2013, 06:55 PM)lonewolf Wrote: [ -> ]Very interesting transaction. I was under the impression that the Singapore Cruise Centre was built with public money- the way Changi Airport and the SMRT stations are built. And as such, logically it should classified as public infrastructure. So how is it that it can be sold to a private entity like SATS?

Even more interesting is the fact that SATS-Creuers has the license to operate the cruise terminal till 2027. So what happens if SATS-Creuers dun win the next operating license tender? Does the new operator (if SATS-Creuers dun win) has to pay SATS some cost in using the cruise terminal? Or is this a clever attempt by SATS to lock in and entrench their position as a cruise operator?

[EDIT] Sorry. I think I'm confusing between Singapore Cruise Centre (the infrastructure) and Singapore Cruise Centre (the terminal operator). The proposed acquisition is for the terminal operator and not the infrastructure. Sorry for the confusion.

Sats is still owned partially by temesek. So tentatively it should be a government owned stocks as well