ST Engineering dissolves inactive Saudi Arabia naval joint venture

MAINBOARD-LISTED Singapore Technologies Engineering (ST Engineering) has started liquidating a joint-venture company in Saudi Arabia, citing the unit's inactivity.

ST Engineering, which owns a one-third stake in ZHR Marine through its VT Halter Marine subsidiary, said on Wednesday that shareholders have agreed to dissolve the company as it "has no outstanding active programmes".

ZHR Marine was set up with Raytheon and Saudi Arabia's Zamil Group to bid for projects under the Royal Saudi Naval Force Eastern Fleet Modernisation Programme and pursue naval modernisation programmes in the Middle East.

The joint-venture company had an issued and paid-up capital of 3 million riyals (S$1.08 million).

ST Engineering added that the liquidation exercise is not expected to materially affect its consolidated net tangible assets and earnings per share for the financial year.

The counter closed up by S$0.03 or 0.89 per cent at S$3.41 before the news.