SATS to buy Singapore Cruise Centre
Cost for the acquisition is $110 million (US$87.6 million). Under the purchase agreement, SATS Airport Services would own approximately 92% with the SATS-Creuers holding 8%. The latter company is a joint venture with the Port of Barcelona. The company plans to use “internal funds” for the purchase.
The Cruise Centre has operations for both cruise ships and ferries. According to SATS, past fiscal year revenue was S$45 million (US$35.8 million) with profits before tax of S$16.7 million (US$13.3 million).
In the announcement of the acquisition, SATS said the purchase gives the comapany a presence in both airport and cruise terminals that will “help to enhance service experience of cruise lines and passengers.” SATS had been managing operations at the terminal since May of last year.
In 2012, the Centre handled just under 1 million passengers with 330 ship calls. SATS projects that up to 1.5 million passengers per year will pass through the terminal by 2017. The total area of the terminal is 40,800 square meters. It has four berths and can handle cruise ships up to Oasis Class which have gross tonnage of 225,282 with capacity to carry more than 5,400 passengers.
Acquisition by SATS is subject to shareholder approval and approval from the Competition Commission and the Maritime Port Authority of Singapore. SATS said approval could take from 30 to 150 working days.