SHS to sell refined petroleum distribution arm for S$100.3m

ENGINEERING and corrosion prevention services group SHS Holdings, formerly known as See Hup Seng, has inked a deal to sell its refined petroleum distribution business to German chemicals distributor Brenntag for about S$100.3 million, it said in a Singapore Exchange filing after market closed on Friday.

Frankfurt-listed Brenntag will buy two of SHS's wholly owned units, Tat Petroleum and Axxmo International, SHS said.

It estimated the net proceeds from the sale to be around S$98.9 million, which it said it would use for working capital, general corporate purposes and reducing the group's external borrowings.

The move was part of the group's "ongoing strategic review" to streamline its businesses and boost its financial flexibility, SHS group chief executive officer Henry Ng said in a statement.

The company expects the divestment to be completed by Q4 2015.

Trading in the mainboard-listed stock was halted on Thursday morning, and remained suspended on Friday. The counter last closed S$0.02 or 8.7 per cent up at S$0.25 on Wednesday.