Singapore, 19 November 2019 – Singapore Technologies Engineering Ltd (ST Engineering) today announced the divestment of its pilot training business in Australia through the sale of all of its shares in Aviation Training Academy Australia Pty Ltd (ATAA) and ST Aerospace Academy (Australia) Pty Ltd (STAA(A)) to Regional Express Holdings Ltd (REX Holdings).
The share sale is completed at a cash consideration of $9.3m on a cash-free and debt-free basis, which was arrived at after taking into account the current market conditions and financial positions of ATAA and STAA(A). The net asset values of ATAA and STAA(A) as of 31 October 2019 are approximately $5.3m and $3.0m respectively.
With this divestment, which is part of the Group’s ongoing efforts to optimise its business portfolio, ATAA and STAA(A) cease to be subsidiaries of ST Engineering.
The divestment is 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.
All figures are denominated in Singapore dollars unless indicated otherwise.
ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. The Group employs about 22,000 people across offices in Asia, the Americas, Europe and the Middle East, serving customers in the defence, government and commercial segments in more than 100 countries. With more than 500 smart city projects across 70 cities in its track record, the Group continues to help transform cities through its suite of Smart Mobility, Smart Security and Smart Environment solutions. Headquartered in Singapore, ST Engineering reported revenue of $6.7b in FY2018 and it ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore, SGX ESG Transparency Index and SGX ESG Leaders Index.
The Aerospace sector provides integrated aerospace services and solutions through a global network of facilities and affiliates in the Americas, Asia Pacific and Europe, supporting a broad customer base that comprises leading airlines, airfreight operators and armed forces. Its wide spectrum of maintenance and engineering solutions include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; as well as aviation materials and asset management services. The sector also has original equipment manufacturing capabilities and holds proprietary designs in products such as aircraft seats. For more information, please visit www.stengg.com.
Regional Express (Rex) is Australia’s largest independent regional airline operating a fleet of more than 50 Saab 340 aircraft on some 1,500 weekly flights to 60 destinations throughout all states in Australia. In addition to the regional airline Regional Express, the Rex Group comprises wholly owned subsidiaries Pel-Air Aviation (air freight, aeromedical and charter operator) and the Australian Airline Pilot Academy.
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