SINGAPORE-BASED ground handling and logistics player sats has revealed how it will raise the US$1.8 billion needed for its purchase of European air cargo and logistics giant Worldwide Flight Services (WFS).
The funds will be generated via a combination of $700 million through euro-denominated term loans and $800 million in a renounceable rights issue of new shares, with the balance coming from internal resources.
While no details were provided on how many rights shares would be issued or the price, the company said it would get the term loan at a favourable rate of 4 per cent to 4.5 per cent.
Temasek, which owns 39.68 per cent of Sats, has committed to taking up its rights entitlements, while DBS Bank, Citi and Bank of America will underwrite the issue.
Sats has about $680 million in cash on its balance sheet to meet the internal funding needs, reports Singapore's The Straits Times.
Details of the funding come two months after the company announced plans to buy the much larger WFS, which is the market leader in North America and Europe for cargo handling, with 114 cargo stations and more than 800,000 sq m of warehouse space via 170 on-airport leased warehouses.
Sats said the acquisition would enable it to expand its footprint beyond just Singapore and the region to become the world's largest air cargo and warehousing player.
The combined entity would have about 205 cargo and ground stations around the world, compared with Zurich-based Swissport, which has 92 cargo stations.
About 85 per cent of Sats' revenue now comes from Singapore, but the enlarged entity would see 45 per cent come from Asia, 30 per cent from the Americas and the rest from the Middle East and Europe.
SeaNews Turkey
The funds will be generated via a combination of $700 million through euro-denominated term loans and $800 million in a renounceable rights issue of new shares, with the balance coming from internal resources.
While no details were provided on how many rights shares would be issued or the price, the company said it would get the term loan at a favourable rate of 4 per cent to 4.5 per cent.
Temasek, which owns 39.68 per cent of Sats, has committed to taking up its rights entitlements, while DBS Bank, Citi and Bank of America will underwrite the issue.
Sats has about $680 million in cash on its balance sheet to meet the internal funding needs, reports Singapore's The Straits Times.
Details of the funding come two months after the company announced plans to buy the much larger WFS, which is the market leader in North America and Europe for cargo handling, with 114 cargo stations and more than 800,000 sq m of warehouse space via 170 on-airport leased warehouses.
Sats said the acquisition would enable it to expand its footprint beyond just Singapore and the region to become the world's largest air cargo and warehousing player.
The combined entity would have about 205 cargo and ground stations around the world, compared with Zurich-based Swissport, which has 92 cargo stations.
About 85 per cent of Sats' revenue now comes from Singapore, but the enlarged entity would see 45 per cent come from Asia, 30 per cent from the Americas and the rest from the Middle East and Europe.
SeaNews Turkey