SINGAPORE. Singapore Airlines, DFASS Singapore (3Sixty) and SATS will invest more than S$35 million (US$25.5 million) in the travel retail joint venture they established in March, which has been renamed KrisShop. [Stock exchange filings referred to ‘DFASS Singapore’ despite the rebranding of parent company DFASS Group to become 3Sixty in October.]
The joint venture was set up to engage in omni-channel travel-related retail operations in Singapore, offering inflight and ground-based duty free and duty paid goods as well as mail order and pre-order services.
The companies have entered into a share subscription agreement with KrisShop in which they will allot and issue shares.
SATS currently holds approximately 24% of KrisShop’s issued share capital and Singapore Airlines holds the remainder. Under the terms of the agreement, SATS will subscribe for one ordinary share, Singapore Airlines for about 2.34 million shares and DFASS for about 1.56 million shares.
Once completed, Singapore Airlines will hold approximately 70% of KrisShop’s issued share capital while SATS and DFASS will each hold approximately 15%. Singapore Airlines will pay an aggregate of US$18 million for its subscription shares, while SATS and DFASS will pay about US$4 million and US$3.9 million respectively.
KrisShop has also entered into a business transfer agreement worth US$20 million with DFASS SATS (DSPL) to acquire DSPL’s business of providing services and merchandise to Singapore Airlines, SilkAir and Scoot Tigerair. DSPL is equally owned by DFASS and SATS Asia-Pacific Star (APS).
On or around completion of the subscription and the business transfer, which is targeted for 30 November, the parties will enter into definitive agreements relating to the joint venture, including a shareholders’ agreement between SATS, Singapore Airlines, DFASS and KrisShop.
SATS and its subsidiaries SATS Security Services Private Limited and APS will enter into separate agreements with KrisShop to supply certain services and licence certain premises.
