Macroasia cuts stake in catering unit, sets up subsidiary

MacroAsia Corporation has sold down its stake in subsidiary MacroAsia Catering Services, Inc. (MACS), the dominant airline catering company in the Philippines, in favor of joint venture partner SATS (Singapore Air Terminal Services), Ltd. (SATS).

In a disclosure to the Philippine Stock Exchange, MAC said it has signed a Sale and Purchase Agreement (SPA) with SATS to sell 162,500 shares representing 13 percent of MACS for an initial

million. There is also a potential earn-out consideration subject to the achievement of certain targets stipulated in the SPA. The purchase price was arrived at on a willing buyer willing seller basis after taking into account MACS’ financial position and business prospects.

MAC currently owns 80 percent of the total issued and outstanding capital stock of MACS. Upon completion of the transaction, MAC’s shareholdings in MACS will be reduced to 67 percent while SATS’ shareholdings in MACS will increase from 20 percent to 33 percent.

Completion of the sale is expected to take place on or about August 31, 2015.

MacroAsia Corporation had acquired an additional 13% stake in MACS in June 2006 through a sale and purchase agreement with Compass Group International BV for million. The transaction with SATS effectively reverts the shareholding of MAC in MACS to its original 67 percent.

“The transaction is a strategic move to further strengthen the partnership and relationship of SATS and MacroAsia Corporation in their food services venture in the Philippines,” MAC said.

Aside from this joint venture in airline catering through MacroAsia Catering, the partners have formed a new company, MacroAsia SATS Food Industries Corporation, as a 100 percent subsidiary of MacroAsia Catering.

This new company is investing in a new food commissary located near East Service Road, Sucat, Muntinlupa City to serve the requirements of institutional clients like hotels/ casinos, call centers and other noneairline institutional clients.

This transaction will serve as further impetus for SATS to strengthen its support for the growth of the JV’s food business in the Philippines.

MacroAsia Catering is currently operating in a 2-hectare facility inside NAIA and this new facility in Muntinlupa to be operated by the newly formed company will complement the current inflight kitchen, aside from focusing on further expansion into the production of food for non-airline clients.