STEng – BT

ST Engg unit to buy S’pore’s Nera for US$112m

Singapore Technologies Engineering Ltd (ST Engineering) said late on Friday it plans to buy satellite telecommunication firm Nera Telecommunications Ltd for S$141.1 million (US$112 million).

The purchase will be made via ST Engineering unit, Singapore Technologies Electronics Ltd (ST Electronics), which has entered into an agreement to buy Nera shares held by majority shareholder Eltek ASA. Eltek controls 50.05 per cent of Nera.

ST Electronics intends to take Nera private, ST Engineering said.

ST Engineering said the acquisition is expected to be financed by internal cash resources and named PricewaterhouseCoopers Corporate Finance Pte Ltd as its financial adviser.

Nera shares finished 5.26 per cent higher on Friday at S$0.50 apiece, above the S$0.45 offered by ST Electronics.

ST Engineering provides services to the aerospace, electronics, land systems and marine sectors. It is also the city-state’s main arm maker. — REUTERS

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