MANILA, Philippines - Singapore Airport Terminal Services (SATS) has increased its stake in airline caterer MacroAsia Catering Services Inc. (MACS), a subsidiary of MacroAsia Corp., the Lucio Tan-led aviation services company.
This development is part of the two companies’ move to further strengthen their partnership in their food services venture in the Philippines.
In a disclosure to the Philippine Stock Exchange yesterday, MacroAsia said it signed a sale and purchase agreement with SATS to sell 162,500 shares representing 13 percent of the total issued and outstanding capital stock of MACS, the dominant airline catering company in the country.
MacroAsia currently owns 80 percent of the total issued and outstanding capital stock of MACS while SATS holds 20 percent.
Under the agreement, the share purchase consideration consists of an initial cash consideration of P168.8 million and “potential earn-out consideration subject to the achievement of certain targets.”
The parties expect to complete the transaction “on or about Aug. 31, 2015,” MacroAsia said.
In 2006, MacroAsia acquired an additional 13 percent stake in MACS through a sale and purchase agreement with Compass Group International BV at a value of P36.4 million.
By mutual agreement of the three joint venture partners in MACS then, the transaction effectively increased the shareholding of MacroAsia in MACS to 80 percent and the balance of 20 percent stayed with SATS as joint venture partner.
“The transaction today effectively reverts the shareholding of MacroAsia in MACS to 67 percent, its original stake when MACS started operations in 1998,” MacroAsia said.
Aside from this joint venture, the partners also formed a new company, MacroAsia SATS Food Industries Corp., as a 100 percent subsidiary of MACS.
This company is investing in a P300- million new food commissary located near East Service Road, Sucat, Muntinlupa City to serve the requirements of institutional clients like hotels and casinos, call centers and other non-airline institutional clients.
MACS is currently operating in a two-hectare facility inside NAIA and this new facility in Muntinlupa to be operated by the newly-formed company will complement the current inflight kitchen, aside from focusing on further expansion into the production of food for non-airline clients.
SATS, on the other hand, is based in Singapore and is listed on the main board of the Singapore Exchange. It has more than 65 years of operating experience and a growing regional presence in Asia Pacific. SATS is the leading provider of gateway services and food solutions in the region. – Louella Desiderio