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Kool Kat
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Dnata buys full Changi stake

Dubai : Dnata, the region’s biggest travel management company, has raised S$140 million (Dh315 million) to complete its purchase of Singapore’s Changi International Airport Services (CIAS).

Dnata, an Emirates Group company, initially acquired a 78.4 per cent stake in CIAS from Singapore’s Temasek Holdings (Private) Ltd in October 2004.

CIAS is an integrated ground handling service provider at Changi Airport.

Dnata yesterday signed signed its first financing agreement through its fully owned subsidiary Kedma Holdings Pte Ltd to complete the purchase of the final 21.6 per cent of CIAS. Dnata now becomes the sole owner.

The move is in tandem with Dnata’s expansion of operations overseas, with the company already exporting its ground handling expertise to airports in Pakistan, Iran, Sudan and the Philippines.

Dnata president Gary Chapman said, “This is a significant investment by Dnata and reflects our belief that Singapore will continue to grow and prosper as a major aviation hub in Asia. We are well advanced in working together to maximise the many synergies between Dnata and CIAS, and exchange ideas on best working practices.”

The acquisition financing, over a 10-year term, was lead arranged and funded by Standard Chartered Bank, with DBS Bank, Overseas China Banking Corporation (OCBC) and United Overseas Bank (UOB), all based in Singapore. It carries a margin of 0.90 per cent over a six month SOR (Singapore Dollar Swap Offer Rate).

Standard Chartered's CEO (UAE) Ray Ferguson, said, “With a strong presence in the Middle East and Asian markets, the Bank is able to tap the international debt markets to provide our clients with innovative financing structures best suited to their financing requirements.

“We are delighted to arrange financing for this transaction with the participation of major Singapore based banks.”

Emirates Group's senior vice-president Riyaz Peermohamed said, “This is a landmark deal.

“It is both the first-ever financing by Dnata and also the first time the Emirates Group has completed a financing agreement in Singapore dollars.

“The deal was done in Singapore dollars to create a new source of financing and a natural hedge, so that inflows from CIAS could be used to satisfy the Singapore dollar obligations under the financing. We also took advantage of the very low Singapore dollar interest rates.”

1,073 Posts
this is an old deal ? it was in al bayan news paper 3-4 months ago if not more .. this might be another deal by Dnata in Singapore ?!
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