The deal implies valuation multiples of 4.1x EV/revenue and 21.4x EV/EBITDA (based on 2024 figures), with an additional earn-out of up to $15 million contingent upon future return thresholds.
Sheikar Jaiswal of RHB Bank Singapore has slightly raised his target price for ST Engineering following news of its latest divestment where proceeds are seen to help reduce debt further and potentially boost earnings from lower financing costs.
As announced on July 17, ST Engineering and Singapore Power are selling their joint venture SPTel to a private equity firm Seraya Partners for an enterprise value of $290 million.
