Singapore’s offshore rig builder Sembcorp Marine, also known as Sembmarine, has completed the acquisition of the remaining 15% equity stake in PPL Shipyard (PPLS).
As reported last Wednesday, Sembmarine had reached a deal with PPL Holdings Pte Ltd (PPLH) and E-Interface Holdings Limited (EIHL) to acquire the remaining 15% in the shipyard for $115 million.
Sembcorp Marine made an initial 50% investment in PPLS back in 2001. In 2003, the company increased its stake in PPLS to 85% and also agreed the terms of the sale by PPLH and EIHL of their balance 15% shares in PPLS.
The company said on Monday that the transaction was completed on the same day and that, as a result, PPLS has become a wholly-owned subsidiary of the company.
Providing rationale for the transaction, Sembmarine said the move would enable it to optimally manage the businesses, finance, and resources of PPLS, and fully align the latter’s corporate strategies to the company to generate sustainable returns.
PPL Shipyard is in the business of designing, constructing, repairing and improving oil rigs, ships, and other ocean-going vessels.