SATS

[BlueKelah]

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.