Singapore’s SIA, Sats & DFASS to invest $25 mln in KrisShop JV

Singapore Airlines (SIA), an airline company, ground handler Sats and an in-flight duty-free speciality retailer DFASS plan to inject over 35 million Singaporean dollars ($25 million) for shares in travel retail joint venture (JV) KrisShop.

Under the terms of the deal, SIA will subscribe for about 2.34 million shares in KrisShop, while Sats will subscribe for 1 share and DFASS, for about 1.56 million shares. SIA will pay for 70 percent stake for $18 million.

SIA will pay an aggregate of $18 million for its subscription shares, while Sats and DFASS will pay about $4 million and $3.9 million respectively. SIA will hold about a 70 percent stake in the JV, while Sats and DFASS will each hold about 15 percent.

Upon completion, KrisShop will be positioned as a travel retail business in Singapore that will offer in-flight and ground-based duty-free and duty-paid goods. The purchase price payable by KrisShop to DSPL for the business transfer is $20 million.