Singapore, 25 September 2019 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its Aerospace arm has injected US$6.4m (about S$9m) into ST Engineering Aerospace Resources Pte. Ltd. (STEA Resources) for a flow through injection into its joint venture company, Keystone Holdings (Global) Pte. Ltd. (Keystone Holdings), to expand the Group’s aircraft leasing business with the purchase of aircraft assets.
These capital injections, funded through internal cash, bring the Group’s total share capital contribution in STEA Resources and Keystone Holdings to about US$55.4m (about S$76m) and US$24.8m (about S$34m) respectively. After the capital injections, the net asset value of STEA Resources is estimated to be US$60.27m (about S$83m) while Keystone Holdings is estimated to be US$53.13m (about S$73m).
Keystone Holdings is a 50-50 joint venture held between STEA Resources and SJ Aviation Capital Pte. Ltd. A holding company for aircraft leasing investments, Keystone Holdings has subsidiaries across various geographies with a portfolio of aircraft which is currently on lease to global airlines.
The exercise is not expected to have any material impact on the consolidated net tangible asset per share and earnings per share of ST Engineering for the current financial year.