ZICO Law network’s Malaysia and Singapore practices, Zaid Ibrahim & Co and ZICO Insights Law, are jointly advising AirAsia on its ground handling partnership with SATS in ASEAN.
The law network reported that under the terms of the partnership, SATS will acquire a 50% interest in AirAsia’s subsidiary, Ground Team Red Holdings (GTRH) in exchange for SATS’ 80% stake in SATS Ground Services Singapore (SGSS), SATS’ ground handling entity serving airlines at Changi Airport’s new Terminal 4, and aggregate cash consideration of S$119.3 million (US$88.5 million).
GTRH will be renamed SATS Ground Team Red Holdings, and will be the 50/50 joint investment vehicle of AirAsia and SATS that will hold stakes in both its Malaysia and Singapore ground-handling subsidiaries, Ground Team Red and SGSS, respectively.
Both companies will also be responsible for growing the ground handling business in their respective markets and will explore expansion into Indonesia, the Philippines and Thailand in the near future.
ZICO Law regional managing partner Hanim Hamzah, Zaid Ibrahim & Co partner Tan Wooi Hong, and ZICO Insights Law director Gregory Chan are leading the ZICO Law team, assisted by Zaid Ibrahim & Co senior associates and associates Amanda Ching, Sanjeve Prakasam, and Gina Golda Pangaila.