- 28 September: SATS announced to buy Worldwide Flight Services (WFS) for an “all-equity” funding of S$1.7 billion. Later, shares plunged 20% in a day.
- 6 October: SATS clarified how it plans to fund the deal
This is bad. I mean, the SATS/WFS buyout was just poor communication to shareholders.
SATS’ shares plunged 20% in a day after announcing that the WFS deal was an “all-equity financing” deal in Sep.
This meant SATS shareholders would have to fork out the entire S$1.7 billion sum.
Well, it turned out that wasn’t the case. Later on, SATS clarified the buyout would be a mix of equity, debt and cash.
The funny thing is though, why hasn’t SATS shares recovered?
Disclaimer — I’m no longer a shareholder of SATS as shared in Diligence.
At first glance, I thought SATS made a good acquisition. But I realized there’s something more about the deal.
Anyway, let’s find out what exactly happened.
SATS/WFS deal timeline — What happened?
