Subject to conditions, the share subscription and business transfer is set to begin on 30 November. 

The SIA (Singapore Airlines)-DFASS-SATS travel retail joint venture has agreed to issue and allot shares worth more than S$35m ($25m) in the carrier’s *KrisShop inflight programme.

As reported, the joint venture was established in March to develop inflight and ground-based duty paid and duty free services, plus mail order and pre-order functions.

Pursuant to the subscription agreement, SIA will invest in 2.34m ordinary shares, DFASS in 1.56 million ordinary shares and SATS for one ordinary share.

SATS will pay S$5.26m ($3.83m) for its shares, SIA will part with S$24.89m and DFASS, S$5.47m.

BUSINESS TRANSFER AGREEMENT

Currently, SATS possesses approximately 24% of the JV company’s issued share capital, with SIA around 76%.

Following the subscription, SIA will hold approximately 70% of the issued share capital in the JV, with DFASS and SATS Asia-Pacific Star Pte. Ltd (APS) each retaining 15% of the JV company.

In a concurrent announcement, the joint venture company will enter into a business transfer arrangement with DFASS SATS Pte. Ltd (DSPL), equally owned by DFASS and SATS’ subsidiary Asia-Pacific Star Pte. Ltd.

This entails the acquisition of DSPL’s merchandise and service delivery business to SIA, Silk Air (Singapore) Private Limited and Scoot Tigerair Pte. Ltd.

The share subscription deal and business transfer, which expects to begin on 30 November, will trigger a definitive shareholding agreement (SHA) between DFASS, SATS, SIA and the JV company.

Meanwhile, SATS and its subsidiaries – SATS Security Services Private Limited and APS – will enter into separate agreements, respectively, with the JV company.

*The JV company was renamed as KrisShop Pte. Ltd earlier this month, having previously been known as Singapore Airport Duty-Free Emporium (Private) Limited.

All images courtesy of Singapore Airlines.