ST Engineering’s Land Systems Arm Acquires Technicae Projetos E Servicos Automotivos LTDA

Singapore Technologies Engineering Ltd (ST Engineering) today announced that its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics) has, through its wholly owned subsidiary, Mobility Systems Pte Ltd, acquired a 90% equity interest in Technicae Projetos e Serviços Automotivos Ltda. (Technicae) for a purchase consideration of BRL1.04m (approximately S$0.6m). Technicae’s remaining 10% equity interest is held by Technicae’s existing shareholder. The consideration was arrived at on a willing buyer willing seller basis, after taking into account Technicae’s current projects and growth prospects. Following the acquisition, Technicae becomes a subsidiary of ST Kinetics.

As part of the acquisition agreement, ST Kinetics has further subscribed to an additional capital call of BRL3.96m (approximately S$2.3m) in proportion to its shareholding in Technicae, increasing its investment in Technicae to BRL5m (approximately S$2.9m).

The acquisition is part of ST Kinetics’ strategic plan to establish a presence in Brazil to further its defence business in Brazil, and thereafter grow ST Kinetics’ presence in the rest of South America.

Established in 2012 in Brazil, Technicae provides automotive maintenance, repair and overhaul services including automotive platforms revitalisation and modernisation projects, as well as related trade, import and export of parts and accessories for its predominantly military customers.

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