SATS said on Monday that its wholly owned subsidiary, SATS China, would acquire 40 percent of Kunshan FoodCo from Wilmar International’s indirect wholly owned subsidiary, Yihai Kerry Investments (YKI) for 80 million yuan.
SATS China would also acquire the remaining 60 percent of Kunshan FoodCo from another wholly owned SATS subsidiary, SATS Food Services (SFS), for 120 million yuan, it said in a filing to SGX after the market close on Monday.
In addition, SATS said that SFS’s 60 percent stake in Langfang FoodCo, which is the joint venture between SFS and Wilmar’s indirect wholly owned subsidiary, WI Kitchen (Tianjin) Investment, or WIKTI, would be sold to WIKTI for 1 yuan.
“Langfang FoodCo has not commenced business operations and neither SFS nor WIKTI has injected their respective share of the registered capital in Langfang FoodCo,” it said.
Both SATS and Wilmar said they wanted to revise their shareholdings in Kunshan FoodCo and Langfang FoodCo.
“SATS wishes to acquire full control of Kunshan Food Co. to scale its operations in China to better serve the needs of its customers in fast casual restaurants and the aviation sector, and with respect to the Langfang acquisition, the Wilmar group wishes to retain the Langfang Food Co for its other businesses,” Wilmar said in a separate filing to SGX on Monday.
SATS said the Kushan acquisitions would be funded through internal resources and paid in cash.