Singapore Technologies Engineering Ltd (ST Engineering) today announced that further to its announcement dated 18 January 2017, its electronics arm Singapore Technologies Electronics Limited (ST Electronics) has completed the acquisition of a 51% equity interest in SP Telecommunications Pte Ltd (SPTel) for a purchase consideration of S$55m, following the receipt of regulatory approvals. Singapore Power Limited (SP) holds the remaining 49% equity interest in SPTel, which will be managed as a joint venture.
With the completion of the acquisition, ST Electronics, SP and SPTel have entered into a shareholders’ agreement to regulate the respective rights and responsibilities of ST Electronics and SP as shareholders of SPTel.
SPTel owns, builds and operates communication and infrastructure services in Singapore. It owns an extensive network of fibre optic back-haul infrastructure and facilities. The combination of the Info-Communications Technology (ICT) expertise of ST Electronics and the assets of SPTel will enhance ST Electronics’ capabilities in providing ICT solutions for government and enterprise customers. This is in line with ST Electronics' strategy to build a more comprehensive suite of ICT offerings and strengthen its position in the Smart City market.
The acquisition 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.