Tiong Seng to buy 51% stake in AMP Systems for S$3.3m
TIONG Seng : BFI 0% has agreed to acquire 51 per cent of electrical and mechanical engineering works provider, AMP Systems, for a consideration of S$3.3 million.
While the acquisition will result in a S$140,000 net loss attributable to Tiong Seng, the construction group said its board believes the transaction will benefit the group by allowing it to capitalise upon AMP’s existing business.
The deal will also further augment Tiong Seng’s technical and technological competencies while opening its construction arm to new green and sustainability opportunities in the built environment, said the group in a bourse filing on Monday (Jul 4).
Tiong Seng’s acquisition of AMP will comprise a 20 per cent purchase of vendor shares from an existing AMP shareholder, and a capital injection to subscribe for new shares to be issued by AMP to complete the group’s 51 per cent stake in the company.
Had the acquisition taken place in FY2021, the group’s net tangible assets per share would have been 43.76 Singapore cents instead of 43.81 cents. Pro-forma earnings per share would remain unchanged at 11.37 cents.
Shares of mainboard-listed Tiong Seng ended Friday unchanged at S$0.128.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
China State Shipbuilding to build 18 LNG ships for QatarEnergy
Philips pays US$1.1 billion in US settlement over ventilator recall
Tesla clears key regulatory hurdles for self-driving in China during Musk’s visit
Hot stock: Seatrium up 5.6% on S$100 million share buyback programme
Norway sovereign wealth fund backs HSBC bonus policy reform
Shell earns US$1 billion a year from US crude trading, court filing shows