Singapore’s Sembcorp Marine has signed a sale and purchase agreement to buy the remaining 15% stake it does not already own in PPL Shipyard from PPL Holdings and E-Interface Holdings for $115,058,934 in total.
PPL Shipyard designs, builds, repairs and upgrades oil rigs, ships and other vessels from its base in Singapore.
Sembcorp Marine first bought a 50% stake in the yard in 2001, followed by the acquisition for another 35% in 2003. Sembcorp agreed the terms of the 100% buyout the same year.
The Singapore-listed group said taking control of the PPL yard would allow 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”.
Sembcorp Marine said it estimates the total purchase consideration for its 100% investment in PPL Shipyard is around S$186m ($137.8m).