18 July 2001
Singapore Airport Terminal Services Limited ("SATS") announces that it is in negotiations with Indian Hotels Company Limited ("IHCL"), a part of the TATA group of companies, to form a new joint venture company which will handle the air catering business of IHCL and its affiliates (the "Taj Group"). It is proposed that the new company will be a 51:49 joint venture between IHCL and SATS.
SATS is a major provider of inflight catering and ground handling services in Asia. It has over 50 years of experience in this business, and a presence in 8 Asian airports through several joint ventures. Its inflight meal catering facilities in Singapore have a daily output of over 60,000 inflight meals per day. The Taj Group, which today handles approximately 38,000 meals per day in India, already has a successful joint venture with SATS in Chennai.
The Taj Group's air catering business consists of air catering units and airport restaurant/lounge businesses in major metro cities throughout India. The Taj Group has approximately 55% market share in this business.
The alliance will enhance to even higher global standards, the Taj Group's air catering business. The new company will also be in a position to exploit the growth opportunities presented by the liberalization of the aviation sector and the increasing expansion and upgradation of India's commercial aviation facilities. SATS' participation will give the company access to expertise in technology, process design and training and development.
For SATS, the venture will expand its presence in inflight catering at key airports in India and fortify its position as a major player in the business.
Negotiations are on-going, and the terms governing the transaction have not yet been finalised.
The transaction is subject to the parties' agreement on detailed terms, approvals of the boards of directors and/or shareholders of each of the Taj Group companies and SATS, all other necessary regulatory and other approvals, satisfactory results of due diligence, and execution of final legal documentation by all relevant parties.
IHCL and SATS will make further announcements in due course when definitive legal documents have been executed by the parties.
For more information, please contact:
Mr Mah Tze Chiang
Singapore Airport Terminal Services Ltd (SATS)
Tel: (65) 5418086
Fax: (65) 5431571
Email: tzechiang_mah@singaporeair.com.sg
| © Copyright 1996-2008 irasia.com Ltd. All rights reserved. |
|
DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any
information provided on this website. Under no circumstances shall irasia.com Ltd be liable
for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website. |