The unit will serve as a centre of excellence for large-scale fresh frozen production in the group’s food solutions network
CATERING and ground handling company Sats has acquired the remaining 15 per cent stake in Sats Food Solutions (Thailand) (SFST) from Bangkok Ranch for about S$3.4 million, giving the company total ownership of SFST.
In a bourse filing on Friday (Jan 31), Sats announced that the acquisition builds on the initial 85 per cent stake acquired in June 2021.
The ground has been broken for SFST’s new facility in Pathum Thani, Thailand, which will span about 35,000 square metres across three buildings. When completed, SFST’s production capacity will increase to 108,000 fresh frozen meals daily.
SFST will serve as a centre of excellence for large-scale fresh frozen production in Sats’ food solutions network.
The transaction is also key to Sats’ strategic partnership with Mitsui announced in July 2024. Mitsui will take a 15 per cent stake in SFST and deepen collaboration between the two.
“This milestone with SFST gives us the agility to fully capitalise on our expanded operational scale and drive our partnership with Mitsui,” said Stanley Goh, chief executive officer, food solutions, Sats.
The acquisition is not expected to have a material impact on Sats’ net tangible assets per share or consolidated earnings per share for the current financial year ending Mar 31.
Shares of Sats closed down 0.3 per cent or S$0.01 at S$3.39 on Friday.
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