(Corrects description of SATS in headline and second paragraph)
JAKARTA Feb 21 Shares of Indonesian airport
servicing firm Cardig Aero Services rose as much as 17
percent, hitting an all-time high on Friday after Singapore
Airport Terminal Services Ltd (SATS) said it has
acquired about 42 percent of Cardig.
Subsidiaries of SATS, which provides a range of passenger
and cargo handling services at airports including Singapore's
Changi, will purchase 869.2 million shares in Cardig for S$118.3
million ($93.5 million), SATS said in a Singapore stock exchange
filing late on Thursday.
Analysts said the investment by a major regional airport
services firm would boost resources at Cardig, which provides
cargo and baggage handling services at Indonesian airports
SATS offered S$0.14 per share, equal to 1,275 rupiah per
share at current exchange rates - a premium of 38 percent to
Cardig's close price on Thursday of 925 rupiah.
At 0515 GMT Cardig's shares were trading 13.5 percent higher
at 1,050 rupiah while the broader Jakarta index was up
0.72 percent. Shares in Singapore-listed SATS rose as much as
1.7 percent to S$3.060.
Jakarta-based Bahana Securities said in a note issued after
the SATS filing that it has raised its target price for Cardig
to 1,170 rupiah from 1,010 rupiah, maintaining its 'buy' rating
on the stock.
"Given that SATS is one of the largest airport services
providers, we believe its presence would improve Cardig's
corporate governance and at the same time, provide technical
know-how for the company," said Aditya Eka Prakasa, aviation
analyst at Bahana, in a note on Friday.
($1 = 1.2648 Singapore dollars)
(Reporting by Andjarsari Paramaditha; Editing by Kenneth