Boustead Singapore sells water solutions unit to Chip Eng Seng for S$7.3m

MAINBOARD-LISTED Boustead Singapore sold its wholly-owned water solutions subsidiary on Wednesday to Chip Eng Seng Corporation for about S$7.3 million.

Boustead Singapore, an infrastructure-related engineering and technology group, entered into a sale and purchase agreement to sell its entire stake in Boustead Salcon Water Solutions to Chip Eng Seng Construction.

Chip Eng Seng Construction is wholly owned by Chip Eng Seng Corp, which has businesses in civil infrastructure and construction.

Meanwhile, Boustead Salcon's principal business activities are providing design, engineering and construction services for water and wastewater treatment plants, Boustead Singapore said in a bourse filing.

The disposal excludes two subsidiaries of Boustead Salcon. Boustead Singapore has entered into a buy back agreement with Boustead Salcon for these companies.

Boustead Singapore said the disposal will allow the group to redeploy the sale proceeds to other core businesses, as well as re-strategise and re-allocate its management and financial capital.

It does not expect the disposal to have any material impact on the group's net tangible assets per share but the sale is expected to have a positive impact on the group's earnings per share for the financial year ending March 31, 2021.

Shares of mainboard-listed Chip Eng Seng closed flat at 43 Singapore cents on Wednesday, while Boustead Singapore finished 0.6 per cent or 0.5 Singapore cent higher at 80.5 cents, before the announcement.