Friday 29 Mar 2024
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SINGAPORE (June 23): Mobility Systems (MSPL), a subsidiary of ST Engineering’s land systems arm ST Kinetics, has entered into an agreement to acquire the remaining 5.64% equity interest in Technicae Projetos e Serviços Automotivos (Technicae).

The purchase consideration for the remaining stake in the Brazil-based automotive maintenance, repair and overhaul (MRO) services provider is BRL 750,000 (S$339,000).

The acquisition will be funded by a capital injection by ST Kinetics.

To satisfy Brazilian laws which require companies to have at least two shareholders, MSPL has also entered into an agreement to transfer one share in Technicae to ST Kinetics subsidiary, SDG Kinetics (SDGK), for BRL 1.

The proposed acquisition and share transfers are subject to regulatory approvals. Upon completion, ST Kinetics’ subsidiaries MSPL and SDGK will hold 100% stake in Technicae.

Notable contracts secured by Technicae include Cascavel armoured vehicle revitalisation services and the upgrading of the Urutu 6x6 Armoured Personnel Carriers for the Brazilian Army.

ST Engineering says the acquisition and share transfers are not expected to have any material impact on its consolidated net tangible assets per share and earnings per share for the current financial year.

Shares of ST Engineering closed 1 Singaporean cent lower at S$3.71 on Friday.

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