Singapore-based ground handler SATS has entered a sale and purchase agreement to acquire 41.65% of Cardig Aero Services (CAS) from two Indonesian companies.
The purchase will be made through subsidiaries SATS Investments (II) and Cemerlang, from Puncak Cemerlang and Bintang Nusantara, with the sale valued at Indonesian rupiah (Rp) 1.1 trillion ($94.8 million), says the ground handler.
As SATS believes Indonesia is a priority market for the firm, acquiring Cardig will contribute to the growing scale in its food business, and allow new connectivity opportunities for its mutual customers.
“We already have a strong partnership with CAS through our joint venture, Jasa Angkasa Semesta (JAS). With this transaction, we will work closely with the management of the CAS group to accelerate its growth in the same way that we have with JAS over the last 10 years,” says SATS president and chief executive Alexander Hungate.
CAS’ key subsidiaries include the ground handler JAS, maintenance and technical services provider JAS Aero Engineering, caterers Cardig Anugrah Sarana Catering and Purantara Mitra Angkasa Dua, and facility management services provider Cardig Anugra Sarana Bersama.
SATS will fund the transaction through its existing cash reserves, it adds.