Singapore Technologies Engineering (ST Engineering) S63 says it has gained $32.4 million after the divestment of its US marine business.
The sum comes after the finalization of the post-closing adjustments under the securities purchase agreement. Following the post-closing adjustments, net working capital related adjustments amounting to US$29.6 million ($40 million) have been determined in favour of ST Engineering. As such, the group’s total gain on disposal is around $32.4 million. Of the sum, $16.3 million had been logged in the group’s FY2022 ended Dec 31, 2022, results based on the then-preliminary estimated net working capital-related adjustments in November 2022.
On Nov 7, 2022, the group announced that it will divest the entire issued and outstanding equity interests in its US marine subsidiaries, VT Halter Marine, Inc (Halter Marine) and ST Engineering Halter Marine and Offshore, Inc. (STEHMO) to Bollinger Shipyards Lockport, L.L.C. (Bollinger) for a cash consideration of US$15 million.
The divestment was completed on Nov 14, 2022.
The post-closing adjustments and gain on disposal will not have a material impact on ST Engineering’s earnings for FY2023.
As at 10.13am, shares in ST Engineering are trading 1 cent higher or 0.26% up at $3.83.
