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Sembcorp Marine increases shareholding in Semb-Eco; divests stake in Ecospec Global Technology
SEMBCORP Marine’s subsidiaries Sembcorp Marine Repairs and Upgrades, and Semb-Eco on Tuesday entered into a share swap agreement with Ecospec Global Technology and their shareholders Chee Hwee Hong and Neonlite Investments.
Some 10 million shares representing 20 per cent of the issued share capital of Ecospec Global Technology will be exchanged for 23.8 million shares representing 45 per cent of the issued share capital of Semb-Eco.
Ecospec Global Technology is a joint venture company between Neonlite Investments Pte Ltd (holding 75 per cent of its issued capital), Mr Chew (5 per cent) and Sembcorp Marine Repairs and Upgrades (20 per cent). Its principal activities are the research and experimental development of environmental and clean technologies.
Semb-Eco is a joint venture company between Neonlite Investments (holding 30 per cent of Semb-Eco’s issued share capital), Mr Chew (15 per cent) and Sembcorp Marine Repairs and Upgrades (55 per cent). The principal activity of Semb-Eco is investment holding.
As part of the transaction, Ecospec Global Technology will assign to Sembcorp Marine Repairs and Upgrades a portion of its intellectual property and proprietary rights for a consideration of approximately S$7.2 million, which is equivalent to all outstanding amounts due from Ecospec Global Technology as at Oct 31, 2018.
Sembcorp Marine Repairs and Upgrades will also acquire five groups of SembEco core patents, which are applied in the development of the following offshore and marine solutions. They include ballast water treatment, exhaust gas cleaning, biofouling control and corrosion control.
Sembcorp Marine President & CEO Wong Weng Sun said: “Through this transaction, Sembcorp Marine further strengthens its intellectual property and knowledge to facilitate research and development of solutions for the global offshore and marine sectors.”
He added that this in turn supports its ongoing efforts to move up the value chain.
Following the deal, Semb-Eco, Semb-Eco Technology and Semb-Eco R&D will become wholly owned Sembcorp Marine subsidiaries, while Ecospec Global Technology will cease to be an associated company of the group.
The transaction is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the company for the year ending Dec 31, 2019.