SINGAPORE (Jan 21): SATS, through its unit Asia-Pacific Star, has signed an agreement with and DFASS (Singapore) to set up a 50:50 travel retail joint venture named DFASS SATS.

Incorporated in Singapore, DFASS SATS will provide inflight duty-free and duty-paid sales, offer mail order and pre-order service, supply liquor for inflight pouring services, and operate ground-based duty-free and duty-paid retail sales in Singapore.

Under the terms of the agreement, DFASS will transfer certain assets including merchandise inventories and point-of-sale devices to DFASS SATS, in exchange for ordinary shares in the company.

Airport ground-handler and inflight food caterer SATS will match the value of these assets by injecting about $11.4 million in cash for its stake in DFASS SATS.

It will also contribute to the joint venture by providing bar-cart packing, warehousing and cabin loading services while DFASS will continue to drive the airline and ground retail programme management including merchandising and sourcing, as well as the procurement and supply of the selling merchandise.

DFASS will also pursue duty-free concession at Marina Bay Cruise Centre Singapore (MBCCS) which is operated by SATS-Creuers Cruise Services, a 60:40 joint venture between SATS and Creuers del Port de Barcelona.

Shares in SATS ended 0.26% lower at $3.91 on Thursday.