Singapore, 23 June 2017 Singapore Technologies Engineering Ltd (ST Engineering) announced that Mobility Systems Pte Ltd (MSPL), a subsidiary of its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics), has entered into an agreement to acquire the remaining 5.64% equity interest in Technicae Projetos e Serviços Automotivos Ltda. (Technicae) for a purchase consideration of BRL 750,000 (about S$339,000) from Technicaes minority shareholder.
The purchase consideration was arrived at, after negotiations between the parties, taking into consideration Technicaes past performance, its current profitability and future growth prospects.
The acquisition by MSPL will be funded by a corresponding capital injection of S$339,000 by ST Kinetics. At the same time, MSPL has also entered into an agreement to transfer one share in Technicae to ST Kinetics subsidiary, SDG Kinetics Pte. Ltd. (SDGK) for a consideration of BRL1 (about S$0.45). This is according to Brazilian laws which require companies to have at least two shareholders. Upon completion, MSPL and SDGK will hold 100% stake in Technicae.
Technicae provides automotive maintenance, repair and overhaul services including automotive platforms revitalisation and modernisation projects for its predominantly military customers. Notable contracts secured by Technicae include Cascavel armoured vehicle revitalisation services and the upgrading of the Urutu 6x6 Armoured Personnel Carriers for the Brazilian Army.
The acquisition and share transfers are subject to regulatory approvals and are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
ST Kinetics (Singapore Technologies Kinetics Ltd) is the land systems arm of ST Engineering, an integrated engineering group. With 50 years of engineering expertise behind us, we are driven by a passion for innovation and work with partners and customers to deliver customised land systems and security solutions that meet the stringent operational requirements of defence, homeland security and commercial customers. Headquartered in Singapore, ST Kinetics employs a skilled workforce of some 5,000 people, 70% of whom are in engineering and technical roles, to support customers in over 40 countries. We are the world leader in niche products such as 40mm munitions. In FY2016, ST Kinetics recorded revenue of S$1.3b. Please visit www.stengg.com for more information.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group specialising in the aerospace, electronics, land systems and marine sectors. It has global presence with offices in Asia, the Americas, Europe and the Middle East and employs about 22,000 employees. Across the globe, its employees bring innovation and technology together to create smart engineering solutions for its customers in the defence, government and commercial segments. Headquartered in Singapore, the Group reported revenue of $6.68b in FY2016 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore and the SGX Sustainability Leaders Index. Please visit www.stengg.com for more information.
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