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ST Engineering’s Aerospace Arm Completes Investment in EcoServices

Singapore Technologies Engineering Ltd (ST Engineering) Thursday announced that following an earlier announcement on 22 December 2011 regarding the investment of a 50.1-per cent equity interest in EcoServices, LLC for a purchase consideration of US$33.3 million (about S$43 million), Vision Technologies Aerospace Incorporated (VT Aerospace) has entered into an agreement with Pratt & Whitney to restructure the original terms of the investment and has also completed the investment under those new terms.

VT Aerospace is the aerospace operation of VT Systems, which is in turn a wholly-owned subsidiary of ST Engineering.

ST Engineering said the restructuring is designed to achieve greater efficiency in the business as it expands internationally.

Under the restructured terms of the investment, VT Aerospace has invested a 50.1-per cent equity interest in EcoServices for a purchase consideration of US$20.0 million (about S$25.3 million).

Immediately prior to the closing of the investment, Pratt & Whitney contributed all of the assets of the EcoServices business to EcoServices other than the business’s intellectual property. At the closing, EcoServices entered into an exclusive, perpetual, irrevocable and worldwide licence and purchase option agreement with Pratt & Whitney for the use and acquisition of that intellectual property.

The purchase option can be exercised anytime after an initial 90-day period following Thursday’s closing. The licence and purchase option agreement may be assigned by EcoServices to another company jointly held by VT Aerospace and Pratt & Whitney, or their respective affiliates. The current aggregate cost of the licence and purchase option is US$13.3 million (about S$16.8 million).

Currently employing some 50 specialists, EcoServices provides advanced technology engine wash services to commercial and military aircraft operators. It will be managed as part of ST Engineering’s aerospace arm.

ST Engineering said the investment is not expected to have any material impact on its consolidated net tangible assets per share and earnings per share for the current financial year.

Singapore Technologies Engineering Ltd closed Thursday at S$3.020.


CapitaLand Says Chongqing Project ‘Progressing as Planned’

In a filing with the SGX on Thursday, CapitaLand Limited said the Chao Tian Men project, a joint venture between CapitaLand, CapitaMalls Asia Limited and Singbridge Holdings Pte Ltd in Chongqing, China, is “progressing as planned”.

Wong Kan Seng, Chairman of Singbridge, and Liew Mun Leong, President and CEO of CapitaLand, met with China’s Vice Premier Zhang Dejiang, who is also the Party Secretary of Chongqing, in the Chinese city on Wednesday.

CapitaLand said that during the meeting, Zhang expressed support for the project and welcomed Singapore enterprises to develop in Chongqing.

It added that it is now working closely with the Chongqing government to implement the project.

CapitaLand, CapitaMalls Asia and Singbridge will develop the site into a landmark mixed development comprising a shopping mall and eight towers for residential, office, serviced residence and hotel use, with a total gross floor area of about 817,000 square metres.

Including land cost, the total development cost of the project is expected to be about RMB21.1 billion (about S$4.2 billion).

CapitaLand Limited closed Thursday at S$2.590.

CapitaMalls Asia Limited closed Thursday at S$1.370.


Sembcorp Marine Unit Secures Three Major Contracts Totalling S$130 million

Sembcorp Marine’s subsidiary Sembawang Shipyard has secured three major contracts totalling S$130 million.

The first contract is awarded by Sonangol Pesquisa e Produção S.A. (SNLPP) for the repair and upgrading of FSO Palanca. Sonangol is a state-owned company, and a subsidiary of Sociedade Nacional de Combustíveis de Angola, E.P.

The contract calls for major repairs and upgrading of the 20-year-old FSO Palanca.

Its major work scope includes renewal of the vessel’s cargo piping system and pumps, tank blasting and coating, and cables renewal for the entire electrical system. The existing 30-man accommodation block will be redesigned and rebuilt to accommodate 60 men. In addition, the new accommodation block will include a new helideck to meet the vessel’s operational requirements.

The vessel is expected to enter Sembawang Shipyard in August 2012 and, upon completion, will return to Palanca Terminal in offshore Angola.

Sembawang Shipyard was also recently awarded two LNG carriers life extension projects from the shipyard’s Favoured Customer Contract client, North West Shelf Shipping Service Company, Australia (NWSSSC). NWSSSC is the shipping service provider to the vessel owner, International Gas Transportation Company Limited, a North West Shelf Venture company registered in Bermuda.

The 20-year-old LNG vessels Northwest Seaeagle and Northwest Sandpiper are scheduled to enter Sembawang Shipyard in June and September 2012 respectively for major repairs and upgrading which, when completed, will further extend the vessels’ trading lives for another 10 years or more, SembCorp said.

It added that the three contracts are not expected to have any material impact on its earnings per share and net tangible assets per share for the year ending 31 December 2012.

Sembcorp Marine Ltd closed Thursday at S$4.530.


UIC Awards Main Building Contract for Singapore Redevelopment Project

United Industrial Corporation Limited (UIC) Thursday announced that the company, through its wholly-owned subsidiary UIC Investments (Properties) Pte Ltd, has awarded the main building contract to Samsung C&T Corporation for the UIC Building Redevelopment Project at 5 Shenton Way, Singapore.

The contract is worth about S$337 million, and construction work is scheduled to start in September this year.

The proposed mixed use UIC Building Redevelopment Project, comprising a 53-storey residential tower and a 23-storey office tower, was jointly designed by Architects 61 from Singapore and UNStudio from the Netherlands.

United Industrial Corporation Limited closed Thursday at S$2.500.


IPC to Purchase Land for Japan Condo Project

IPC Corporation Ltd Thursday announced that it has entered into an agreement to purchase a piece of land to build a 75-unit condominium project at Oiso in Kanagawa prefecture, which is about 60 kilometres to the southwest from the centre of Tokyo, Japan.

The Oiso project is a three-storey development and building completion is scheduled for the third quarter of 2013. It is the sixth condominium project in Japan for the company.

The company has at the same time entered into a sales and purchase agreement with a Japanese real-estate company to pre-sell the entire project to them. Full payment to the company will be made upon the project’s completion and delivery of the 75 apartment units.

The total cost of the Oiso project is about JPY2.48 billion (about S$39.1 million), which will be funded by internal resources.

IPC said it is continuously evaluating property projects in Japan to purchase, develop and resell, as well as for income producing purposes, particularly for business hotels.

IPC Corporation Ltd closed Thursday at S$0.155.


Keppel Completes Sale of Subsidiary

Keppel Corporation Limited (KCL) Thursday announced that its indirect wholly-owned subsidiary, KV Enterprises BV, has completed the sale of 8,750,000 shares, or 100 per cent, of the share capital of Keppel Norway AS to OneCo AS for an aggregate cash consideration of US$1.2 million (about S$1.5 million).

KCL said that with the completion of the sale, Keppel Norway AS has ceased to be a subsidiary of the company.

Keppel Corporation Limited closed Thursday at S$10.080.