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SIAEC, JV partners to sell aircraft component repair company for US$60 million
MAINBOARD-LISTED SIA Engineering Company (SIAEC), together with its joint venture partners Pratt & Whitney (P&W) and China Airlines, has entered into an agreement to divest Asian Compressor Technology Services Company (ACTS) to MB Aerospace Newton Abbot for US$60 million.
The sale of SIAEC's stake in ACTS is expected to net SIAEC a gain of approximately S$14.3 million for the financial year ending March 31, 2018. SIAEC's actual share from the divestment will work out to US$14.7 million.
Taiwan-based ACTS is a joint venture between SIAEC (24.5 per cent), P&W (51 per cent) and China Airlines (24.5 per cent). It is in the business of repair and overhaul of compressor stators, shrouds and honeycomb seals and segments for the PW4000, PW2000, V2500 and CFM56 engines.
SIAEC said: "SIAEC and P&W have been jointly reviewing our portfolio of joint ventures for consolidation and growth. This is part of SIAEC's restructuring initiatives to focus on growth areas and build next-generation aircraft capabilities."
Based on ACTS's audited financial statements for the financial year ended Dec 31, 2016, the net tangible asset value of SIAEC's stake in ACTS is US$8.6 million.