Singapore Airlines, SATS and DFASS (Singapore) enter transfer agreement for joint venture

Singapore Airlines plane on the ground at Singapore’s Changi Airport; taken November 2018.Singapore Airlines plane Changi Airport.

Singapore Airlines, SATS and DFASS (Singapore) on Friday entered into a share subscription agreement with joint venture company KrisShop, the companies said in filings to SGX on Friday.

The joint venture will be a Singapore travel retail business, offering in-flight and on-ground duty-free and duty-paid items, and mail-order and pre-order options, it said.

SATS currently holds around 24 percent of the joint venture company, while SIA holds the remainder, it said.

Under the deal, SATS will subscribe for one share in the joint venture company, SIA will subscribe for 2.34 million shares and DFASS will subscribe for 1.56 million shares, the filing said. The deal is expected to be completed on 30 November, it said.

SATS will pay KrisShop S$5.27 million, SIA will pay S$24.90 million and DFASS will pay S$5.78 million, it said, with the consideration paid in cash and by a promissory note from DFASS.

After the subscription, SIA will hold around 70 percent of KrisShop, and SATS and DFASS will each hold around 15 percent, it said.

As part of the deal, the joint venture also entered a deal with DFASS SATS (DPSL) to acquire its business of providing services and merchandise to SIA, SilkAir (Singapore) and Scoot Tigerair, the filing said. The joint venture company will pay DSPL S$27.5 million, subject to adjustments, in cash and via the promissory note from DFASS, it said.

The joint venture company, KrisShop, was renamed earlier this month from  Singapore Airport Duty-Free Emporium (Private) Ltd., it said.

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