Singapore, 5 May 2016 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that Autonomous Technology Pte Ltd (ATPL), a wholly owned subsidiary of its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics), has entered into a sale and purchase agreement (SPA) with its joint venture partner Guiyang Industrial and Commercial Assets Management Co., Ltd. (GICAM) to divest its entire 60% equity stake in Guizhou Jonyang Kinetics Co., Ltd. (GJK) to GICAM for a cash consideration of RMB200m (approximately S$43m).
The divestment is part of ST Kinetics’ continuous review of its specialty vehicle business in China. The management has decided to exit the GJK business, which builds excavators and is in a segment that increasingly requires scale to gain competitive advantage.
The consideration for the divestment took into account the general market conditions of the construction equipment segment in China, GJK’s net assets value and its expected financial performance. The completion of the divestment is subject to several conditions precedent, including but not limited to the approval of relevant governmental or regulatory authorities.
This 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.
ST Kinetics (Singapore Technologies Kinetics Ltd) is the land systems and specialty vehicles arm of Singapore Technologies Engineering Ltd. It is one of Asia’s leading land systems and specialty vehicles companies, delivering smart engineering solutions since 1967 for the commercial, defence and homeland security markets. With more than 6,500 employees worldwide and revenue of over S$1.4b in FY2015, ST Kinetics delivers products and solutions to end users in more than 40 countries around the world; helping to maintain the peace of nations and increasing the productivity of businesses involved in earthmoving, road construction and goods distribution. Please visit www.stengg.com for more information.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenue of $6.34b in FY2015 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index and MSCI Singapore. ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries. Please visit www.stengg.com for more information.
SVP, Corporate Communications
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