SATS: Confirming earlier speculation, SATS has announced the sale of Daniels Grp to a Hain Celestial Group for a total consideration of £151m ($305m, or 28c/SATS share), with potential for further upside (capped at £13m) if certain EBITDA targets are met.
Citi note that near term, the confirmation of the deal could provide some excitement over the possibility of yet another special div, however longer-term questions remain as house view earnings growth remain subdued due to margins pressure as well as increased competition at Changi, notwithstanding recent efforts by mgmt to find new growth segments (such as bidding for the new International Cruise Terminal), while Co. is also vulnerable to a further deterioration in global economic conditions. House maintains Sell with $2.35 TP.
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