Soilbuild Construction said on Wednesday that its wholly owned subsidiary, Precast Concrete Pte. Ltd., or PCPL, entered a deal to acquire Sembcorp EOSM from seven shareholders from a total consideration of S$12.25 million.
PCPL will pay cash for Semcorp EOSM, with the deal to be funded via a combination of internal funds and bank borrowings, Soilbuild Construction said in a filing to SGX after the market close on Wednesday.
Singapore-based Sembcorp EOSM has an issued and paid-up capital of S$20.95 million and it’s mainly involved in designing, building, fabricating and manufacturing pre-fabricated, pre-finished volumetric construction (PPVC) modular components and other building materials in Singapore, Malaysia and India, the filing said.
Soilbuild said it expected the proposed acquisition would benefit the group by boosting its ability to deliver construction and management services. It noted that Singapore’s Building and Construction Authority (BCA) last year moved to push the construction industry to adopt new technologies, including PPVC.
The sellers were Sembcorp Design and Construction, which held 60 percent of Sembcorp EOSM, Thye Chuan Engineering Construction, which held 17.8 percent, Wong Seng, who held 2.8 percent, Lim Tong Soon, who held 9.7 percent, Ling Hwee Doon William, who held 6.8 percent, Ho Hock Liong, who held 1.4 percent,, and Ho Thomas Kwok Tao, who held 1.5 percent, it said.
In a separate filing to SGX on Wednesday, Sembcorp Industries said its wholly owned subsidiary, Sembcorp Design and Construction, agreed to sell its 60 percent stake for around S$7.4 million, a figure arrived at after taking into account the market value of the property assets.
“This divestment is in line with Sembcorp group’s strategy to unlock value and recycle capital to reinvest in growth,” Sembcorp said, adding the divestment was expected to be completed by 23 November.