SATS: is taking a 51% stake in a JV firm that will provide food and allied services to firms operating in remote areas around the world. Its partner is OCS Ventures, an investment holdco, which has the relevant experience.
The JV, to be HQ in Spore, will start out by focusing on the industries of oil & gas, mining, marine, defence, and industrial & infrastructure construction. Geographic coverage would include Asean, China, Australia, New Zealand and Papua New Guinea.
SATS's latest JV is not its only attempt to diversify beyond the aviation food service business. Just recently, SATS said it would manage and operate the $500m International Cruise Terminal (ICT) at Marina South that is being built.
SATS trades at 12.8x P/E. Street ratings are mixed with 5 Buys, 6 Holds and 4 Sells. Recent TP ranges btwn $2.15 – 3.30.
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