Brahim’s sells stake in airline caterer to SATS

PETALING JAYA: Brahim’s Holdings Bhd has sold its 49% stake in Brahim’s Airline Catering Holdings Sdn Bhd (BACH ) to SATS Investments Pte Ltd for RM218 million, an amount that will only be disbursed if a key subsidiary meets its financial targets.
SATS Investments is a subsidiary of Singapore-listed SATS Ltd.
BACH is an investment holding company. Its 70%-owned subsidiary, Brahim’s Airline Catering Sdn Bhd (BAC), is principally involved in the provision of in-flight catering and related services such as cabin handling.
Brahim’s will be paid RM110 million upon completion of the share sale agreement, another RM90 million if BAC meets or exceeds financial targets for financial year 2016, 2017 and 2018 and the remaining up to RM18 million, if it exceeds the targets set. The money raised will be used to repay bank borrowings and for working capital.
The remaining 30% equity interest in BAC is held by Malaysia Airlines Bhd. BAC is the principal in-flight catering service provider at both KL International Airport in Sepang and Penang International Airport.