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SEMBCORP Marine (SembMarine) is acquiring the 15 per cent of PPL Shipyard (PPLS) that it doesn't already own for US$115 million in cash, making the vessel design and construction firm a wholly-owned subsidiary of the group.
In an announcement on Tuesday evening, the rigbuilder said the acquisition will enable the firm to optimally manage the business, finance and resources of PPLS, and fully align its corporate strategies to the group's, to generate sustainable returns.
It first acquired a 50 per cent stake in PPLS in 2001, before increasing it to 85 per cent two years later.
With the latest acquisition, it will have invested about S$186 million in PPLS, it said. "Over the years, the investment in PPLS has helped propel the company to be a global player in the design and construction of jackup and semi-submersible rigs," said SembMarine.
The US$115 million consideration will be funded through internal cash resources and debt.
The 15 per cent stake in PPLS is currently held by PPL Holdings Pte Ltd and its wholly-owned subsidiary E-Interface Holdings.
In a separate announcement, Yangzijiang Shipbuilding, which holds a 45 per cent effective equity interest in PPL Holdings, said it will receive about US$51.8 million for the sale which it intends to use for working capital.