SATS to sell stake in Saudi catering company

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Ground handling and in-flight catering company SATS will sell its 40% stake in a Jeddah-based catering company in order to pursue other investment opportunities in the Middle East.

The company said in a statement to the Singapore Stock Exchange that it will sell its entire holding in Adel Abuljadayel Flight Catering (AAFC) for a cash consideration of $18.4 million, subject to regulatory and other approvals.

"The Company has periodically reviewed its investment in AAFC and believes that the Proposed Transaction would be in its interests as it continues to pursue other attractive investment opportunities in the Middle East region," it adds.

Singapore-based SATS also has investments in other ground handling and catering businesses in India, China, Japan and the Philippines.