Hong Kong Airlines has chosen Asia Airfreight Terminal (AAT) for cargo services and SATS HK for ramp services at Hong Kong International Airport.
SATS has also entered into sales and purchase agreements with the airline through its wholly-owned subsidiaries Voltaire Capital Investment (VCIL) and Holistic Capital Investment (HCIL) in relation to the sale of issued shares of SATS’ wholly-owned subsidiary SATS HK and associate AAT.
SATS will be divesting a 51 per cent stake in SATS HK to VCIL, and SATS HK will capitalise existing loans from SATS to pay for new shares to be issued to SATS, which will sell VCIL 51 per cent of the enlarged share capital of SATS HK at a sale consideration of 76.5 million Hong Kong dollars ($9.85 million), resulting in SATS holding a 49 per cent shareholding in SATS HK.
SATS will also sell four per cent of issued shares of AAT to HCIL for HK$100 million, and it will remain the largest shareholder with a 45 per cent stake while HCIL will become the second largest shareholder at 35 per cent.
SATS president and chief executive officer, Alex Hungate says: “We welcome this partnership with Hong Kong Airlines. With the injection of their large base load at their Hong Kong hub, SATS HK and AAT will be able to improve the utilisation of their facilities and enjoy better operating leverage.”
“The increased scale will improve service and connectivity for all our customers in Hong Kong. This initiative reflects our agility and ability to adapt and grow in a challenging operating environment.”