STEng – BT
ST Engg buys 33% of S’pore Airshow organiser
Price of $17.57m to be paid in cash from internal resources
ST ENGINEERING has bought a one-third stake in events organiser Singapore Airshow & Events (SAe) for $17.6 million.
The vendor was the Defence Science and Technology Agency (DSTA), which retains a 17 per cent stake in the company. Other shareholders are the Civil Aviation Authority of Singapore (30 per cent) and Changi Airport Group (Singapore) (20 per cent).
With the acquisition, ST Engineering becomes the single largest shareholder of SAe. The purchase price of $17.57 million will be satisfied in cash from internal resources, ST Engineering said yesterday.
The company said that SAe’s unaudited net tangible assets as at Aug 31 was about $54 million.
Peter Seah, Desmond Kuek, Tan Kim Siew and Quek Tong Boon are directors of ST Engineering and members of the DSTA Board, the company disclosed.
The acquisition is not expected to have a material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
SAe is principally engaged in organising and managing conferences, exhibitions and other related activities. It was set up in 2005 primarily to organise and manage the biennial Singapore Airshow, Asia’s biggest aviation and defence exhibition.
As well, SAe co-organises Singapore International Water Week, an event that brings together leaders in the water industry.
Based on SAe’s audited accounts for the financial year ended March 31, the company’s net tangible assets and loss after tax were $20.6 million and $6.1 million respectively.
ST Engineering said that due to the nature of the airshow business, losses are incurred in a financial year when there is no airshow.
The company said that the Singapore Airshow is an important avenue for it to display its products to an international audience.
Last year, ST Engineering was the single largest exhibitor at the show and announced close to $500 million of signed contracts during it.
ST Engineering’s shares closed yesterday at $2.82, up four cents.