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Update: ST Engineering's US subsidiary in Saudi JV
A US subsidiary of Singapore Technologies Engineering (ST Engineering) has entered into a joint venture in Saudi Arabia.
The US subsidiary, VT Halter Marine Inc, has formed a new joint venture, ZHR Marine LCC, with Raytheon Company and Zamil Group, ST Engineering said in a Singapore stock exchange disclosure.
ZHR Marine has an issued and paid up capital of three million Saudi riyal (about S$1.1 million).
Each of the three named partners will hold one third of the shareholding in ZHR Marine.
The JV is set up for the purpose of bidding for projects under the Royal Saudi Naval Force (RSNF) Eastern Fleet Modernisation Programme, which requires local content.
The partnership will leverage the experience of VT Halter Marine in the construction of naval vessels, the shipbuilding capability of the Al Zamil Group, and Raytheon's broad portfolio of naval systems and weapons, and ship systems integration expertise.
The setting up of this joint venture 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.
In a separate Singapore Exchange disclosure, ST Engineering said Han Yew Kwang, the former executive vice-president of shipbuilding at ST Marine, was sentenced to six months' imprisonment and fined S$80,000, or in default four months' imprisonment.
Han was chief operating officer of ST Marine from June 2002 to June 2007, before leaving the subsidiary of ST Engineering in June 2014 as executive vice-president of shipbuilding. He pleaded guilty on May 10, 2016, to a total of 49 charges under Section 477A of the Penal Code and one charge under Section 6(b) read with Section 29(a) of the Prevention of Corruption Act.
ST Engineering maintained it does not condone fraud, including corruption and bribery, and is fully committed to proactively mitigating the risk of its occurrence.
It also said ST Marine has been extending its fullest corporation to the Corrupt Practices Investigation Bureau in the bureau's investigations since 2011 into certain transactions involving ST Marine's former and current employees.