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ST Engineering divests 25% interest in Airbus Helicopters S-E Asia JV
SINGAPORE Technologies Engineering (ST Engineering)'s aerospace arm is divesting its 25 per cent stake, worth 9.125m euros (S$14m), in its joint venture company Airbus Helicopters South East Asia (AHSA) to the joint venture partner Airbus Helicopters SAS.
The two set up the joint venture company in 1977 to provide helicopter sales, repair, overhaul, logistics and product support services.
"The divestment of AHSA is a result of ST Engineering's ongoing business review to streamline capabilities and optimise resources within its aerospace sector and is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year," said ST Engineering in a Singapore Exchange filing on Friday.
With this divestment, AHSA ceases to be an indirectly held associated company and joint venture of ST Engineering.
The transaction will be paid wholly in cash, and the price was arrived at on a willing buyer and willing seller basis, taking into account the projected future cash flow of the joint venture company.
ST Engineering shares closed unchanged at S$3.29 on Friday before the announcement was made.