KUALA LUMPUR (Oct 22): Brahim's Holdings Bhd received an offer from Singapore-based SATS Ltd to buy a 49% stake in Brahim's Airline Catering Holdings Sdn Bhd (BACH) for RM218 million.

In a statement to Bursa Malaysia today, Brahim's said the conditional binding offer involved the acquisition of 490,000 shares in BACH.

"The board will appoint the relevant advisers in due course and deliberate on the terms of the said offer and decide on the next course of action.

"Further announcements will be made once the board has made a decision on the conditional binding offer," Brahim's said.

SATS plans to pay the RM218 million to Brahim's in two portions. Brahim's said the first RM110 million portion would be paid upon completion of the transaction.

The remaining RM108 million is conditional upon certain financial targets being met, according to Brahim's.

Brahim's website indicates that BACH owns 70% in Brahim's Airline Catering Sdn Bhd (BAC), which offers catering services to 28 global airlines. These include Malaysia Airlines Bhd, AirAsia and Cathay Pacific.

Malaysia Airlines owns the balance 30% stake in BAC.

SAT's website shows that the company extends its catering expertise to various sectors including the aviation, logistics and hotel industries.

Trading of Brahim's shares has been suspended since 10.46am in conjunction with the announcement. Trading will resume at 2.30pm today.

Prior to the suspension, Brahim's shares rose as much as 28.5 sen or 42% to 96.5 sen. The stock had later cut gains at 94.5 sen for a market capitalisation of RM228.03 million. Brahim's was the third-largest gainer across the exchange.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)