Well I thought this was a major purchase when you see the share price jump 3-4%. The announcement on yesterday was that SATS Airport services and SATS-Creuers will acquire Singapore Cruise Centre from Temasek.
Announcement here
SATS will effectively own 96.8% of it.
Singapore Cruise Centre have a license to operate for another 14 years. And perhaps it is likely that the license will be extended (not sure if there is a licensing fee to it)
On a revenue of 45 mil and a profit before tax of 16.7 mil the margin comes up to 37%. After a 17% tax rate, the margin becomes 30%.
At a purchase consideration of 101 mil the ROA comes to 12.8% which is very good.
13 mil looks like it will give a healthy boost to profit after tax for the Gateway services division, which is likely where it will ...
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