Sats to partner Japan's Mitsui to expand business

Wholly owned subsidiary set up to pursue potential food solutions-related investments

Sats will partner Japanese trading and investment company Mitsui & Co to develop and grow their respective food and retail solutions businesses.

A wholly owned subsidiary has been established as a holding vehicle through which the two will jointly pursue potential food solutions-related investments, the airport services provider said in a bourse filing on July 18.

As part of the deal, Mitsui will pay about $36.4 million for a 15 per cent stake in the subsidiary, Food Solutions Sapphire Holdings, which will include four of Sats' indirect wholly owned food solutions entities. The amount also accounts for certain loans and bonds related to Sats' food solutions entities.

The deal was made on a willingbuyer, willing-seller basis, taking into consideration the current financial position and future growth prospects of the entities, Sats said.