JV with Wilmar signals SATS’ take-off beyond Singapore’s shores: analysts

It’s heading towards China.

While being relatively small, analysts said SATS’ 60-40 joint venture with Wilmar is the first step as the airline services firm continues to broaden its focus outside of Singapore.

According to analysts from UOB Kay Hian, the JV has scope for expansion, as it would be able to tap onto SATS & BRF’s favourable reputations as premier food producer and distributor, while tapping onto Wilmar’s retail distribution network in China.

Meanwhile, UOB Kay Hian adds that the firm is also on an M&A trail, but recent acquisitions can be funded by annual cash generation.

“Over the past seven months, SATS has announced four JVs or acquisitions outside Singapore, which will enhance its reach in new markets as well as provide scale to its Singapore operations,” UOB Kay Hian said.

“They are: a) the increased stake in MacroAsia (their Philippines food solutions associate), b) the acquisition of a 49% stake in Brahim, c) the JV with DFASS, and d) the JV with Wilmar.

These investments amount to S$114m, which can easily be funded by recurring free cash flow (RCF),” they added.

Also Read

Singapore Airlines Group sees 7.9% rise in September passenger volume

CAAS and WAI-SG partner to promote aviation careers for young women

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit