KUALA LUMPUR (July 13): Singapore-listed SATS Ltd has disposed of its entire 49% stake in Brahim’s SATS Investment Holdings Sdn Bhd (BSIH) for a cash consideration of RM10 million, according to the group’s filing with Singapore’s bourse on Wednesday (July 13). 

The group said its wholly-owned subsidiary SATS Investments Pte Ltd on Tuesday entered into a share purchase agreement with Dewina Brahim’s Holdings Sdn Bhd and Brahim’s Holdings Bhd for the equity divestment. 

BSIH, in turn, holds a 70% interest in an in-flight catering services provider, namely Brahim’s SATS Food Services Sdn Bhd (BSFS), while the remaining 30% interest in BSFS is held by Malaysia Airlines Bhd. 

“The proposed transaction is made following a comprehensive review of the current market position and challenging operating circumstances of BSFS, and the strategic value and financial significance of BSFS to the company,” the group said. 

SATS Ltd is the main ground handling and in-flight catering service provider at Singapore's Changi Airport. 

It controls about 80% of Changi Airport's ground handling and catering business. 

To recap, loss-making airline caterer Brahim’s Holdings was delisted from Bursa Malaysia on June 3 after the stock exchange operator rejected the group’s appeal for more time to submit its regularisation plan. 

In the first quarter ended March 31, 2022 (1QFY22), Brahim’s net loss narrowed to RM4.85 million from a net loss of RM6.92 million a year earlier, due to higher revenue contributions from in-flight catering and related services.

Its quarterly revenue more than doubled to RM16.19 million from RM7.15 million.

Beforehand, Brahim's shares had been suspended since April 22 and were last traded at one sen, valuing the airline caterer at RM3.07 million.

The stock reached its peak of RM2.64 in March 2014, which was coincidentally when the group last reported positive earnings, with a net profit of RM22.03 million for FY13. Since then, it has not been profitable.