SATS

SATS: OCBC maintains Hold with $3.35 TP. House note that SATS will acquire Singapore Cruise Centre (SCC) from Temasek for $110m. This acquisition will complement SATS's existing cruise services at the Marina Bay Cruise Centre, and give it control of the ferry terminals at Tanah Merah, Pasir Panjang, and HabourFront Centre, which has an anchor client in the form of the popular Star Cruises. House view the deal favourably as it is cash generative (SCC had revenue of S$45m and PBT of S$16.7m in FY13), should enhance SAT’s FY14F EPS by at least 5%, and will provide growth opportunities for its gateway and food solution businesses.