ZICO Law Advises AirAsia On New ASEAN Focused Ground Handling Joint Venture.
Legal News & Analysis - Asia Pacific - ASEAN - Corporate/M&A
3 November, 2017
ZICO Law network’s Malaysia and Singapore practices, Zaid Ibrahim & Co. and ZICO Insights Law LLC are jointly advising AirAsia on its ground handling partnership with SATS Ltd. in ASEAN, as announced on 30 Oct 2017.
Under the terms of the partnership, SATS will acquire a 50% interest in AirAsia’s subsidiary, Ground Team Red Holdings Sdn Bhd (“GTRH”) in exchange for SATS’ 80% stake in SATS Ground Services Singapore Pte Ltd (“SGSS”), SATS’ ground handling entity serving airlines at Changi Airport’s new Terminal 4 and aggregate cash consideration of SGD119.3 million (approximately MYR372.2 million).
GTRH will be renamed SATS Ground Team Red Holdings Sdn Bhd, and will be the 50:50 joint investment vehicle of AirAsia and SATS that will hold stakes in both its Malaysia and Singapore ground-handling subsidiaries, Ground Team Red Sdn Bhd and SGSS respectively. Both companies will also be responsible for growing the ground handling business in their respective markets and will explore expansion into Indonesia, the Philippines and Thailand in the near future.