Rajah & Tann Singapore acted for DBS Bank Ltd. (“DBS”), as the lead financial adviser, Merrill Lynch (Singapore) Pte. Ltd. (“BofA Securities”) and Citigroup Global Markets Singapore Pte. Ltd. (“Citi”) as the joint financial advisers (and DBS, BofA and Citi being the joint underwriters), and Oversea-Chinese Banking Corporation Limited (“OCBC”) and United Overseas Bank Limited (“UOB”) as the co-lead managers, in the underwritten renounceable rights issue of SATS Ltd. to raise gross proceeds of approximately S$798.8 million, to partially finance the acquisition by SATS Ltd. of Worldwide Flight Services.
60.32% of the rights issue is being underwritten by DBS, BofA, Citi, OCBC and UOB.
The acquisition by SATS Ltd. of Worldwide Flight Services, the world’s leading air cargo company, for a total cost of approximately S$1,820 million, will allow SATS to gain leading positions in strategic hubs connecting key trade lanes across North America and Europe, complementing its operations in Asia Pacific, and enable SATS Ltd. to expand its capabilities to meet growing demand from customers wanting to transport higher-value goods, including pharmaceutical products, vaccines and specialised cargo, on a global scale.
This is a landmark transaction representing one of the few rights issues by a listed company on the SGX to finance an acquisition of a significant business, and the unique nature and background to the fundraising required the deal team to advise on novel issues with respect to the structuring of the transaction and documentation.
The deal is led by Partner Raymond Tong and supported by lawyers Hilary Toh-Chin and Cao Han.
Read more about the transaction in the links below:
https://sbr.com.sg/aviation/news/sats-raise-s7988m-in-rights-issue-wfs-acquisition
