Shares of cargo handler and catering company SATS plunged 21% to a two-year low after resuming trade today. This, following news of the company’s deal to buy the world’s largest air cargo handler for $1.64 billion. The sell-off comes after the company revealed that the deal will be partially financed with a $1.7 billion equity fundraising. The company will make a rights issue of 609 million new shares at $2.79 per share to raise the bulk of the funds. This, according to some analysts, would impact SATS share price ex-rights, accounting for the fall today.
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