ST Engineering to sell 50% stake in Keystone for US$10.7m

SINGAPORE Technologies Engineering Ltd (ST Engineering) said ST Aerospace Resources Pte Ltd has signed an agreement to divest 50 per cent of its equity stake in Keystone Holdings (Global) Pte Ltd to SJ Aviation Capital Pte Ltd, a Singapore-based subsidiary of Japanese trading company Sojitz Corporation for an estimated US$10.7 million.

The consideration, to be finalised at completion, took into account Keystone Holdings' current performance and net asset value. The completion of the agreement is subject to the customary closing conditions that will lead to the execution of a joint venture agreement.

Upon completion, ST Aerospace Resources and SJ Aviation Capital will each own a 50 per cent stake in Keystone Holdings.

Post-transaction, the shareholders plan to continue to build up a portfolio of mid-life and end-of-life single-aisle aircraft assets, tapping on opportunities created by global aircraft fleet expansion and renewal.

The proposed transaction 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.