SembCorp Marine Ups Stake in PPL Shipyard
The Board of Directors of SembCorp Marine Ltd (“SembCorp Marine”) wishes to announce that:
- SembCorp Marine has acquired a 35 per cent equity stake comprising 7.0 million ordinary shares of $1.00 each in PPL Shipyard Pte Ltd (PPLS). The total consideration of $14.7 million for the acquisition was calculated based on a 23 per cent premium over PPLS’ Net Tangible Assets of $1.71 per share as at June 30, 2003. The transaction was entered into on a willing buyer, willing seller basis and paid in cash from internal resources. Upon the completion of the acquisition, PPL Shipyard becomes an 85 per cent owned subsidiary of SembCorp Marine.
- PPLS is a rig-building yard with proven track record in the building and servicing of jack-ups and semi-submersibles. It has recently delivered its first deepwater jack-up drilling rig to Global SantaFe International with the second jack-up drilling rig due for delivery in the first quarter of 2004.
- Currently, SembCorp Marine’s subsidiary, Jurong Shipyard Pte Ltd in collaboration with PPL Shipyard is building two units of Friede & Goldman ExD-designed deepwater semi-submersible drilling rigs for Global SantaFe International with the first unit due for delivery in the first quarter of 2004.
- The acquisition is not expected to have a material impact on the earnings and the net tangible assets per share of SembCorp Marine. None of the Directors or substantial shareholders has any interest, direct or indirect, in the acquisition.
Mr Heng Chiang Gnee, Deputy President of SembCorp Marine said: “With the majority stake in PPL Shipyard complemented by the other facilities and capabilities within SembCorp Marine, we will be better positioned to grow our offshore businesses.”
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