Sembcorp Marine said on Tuesday that its subsidiaries Sembcorp Marine Repairs and Upgrades (SMRU) and Semb-Eco entered into a share swap deal with Ecospec Global Technology (EGT) and their shareholders Chew Hwee Hong and Neonlite Investments.
Under the deal, 10 million shares of EGT, or a 20 percent stake, will be exchanged for 23.80 million shares, or a 45 percent stake, or Semb-Eco, the rigbuilder said in a filing to SGX after the market close on Tuesday.
Once the share swap is completed, Semb-Eco, Semb-Eco Technology and Semb-Eco R&D will become wholly owned subsidiaries of SembMarine, while EGT will no longer be an associated company, the filing said.
In addition, EGT will assign to SMRU certain intellectual property and proprietary rights for consideration of around S$7.2 million, which is equivalent to all outstanding amounts due from EGT, the filing said.
SMRU will also acquire five groups of Semb-Eco core patents, which are related to ballast water treatment, exhaust gas cleaning, biofouling control and corrosion control, it said.
Wong Weng Sun, president and CEO of SembMarine, said in the statement that the deal will strengthen his company’s intellectual property and ability to facilitate research and development for the offshore and marine sector, helping it to move up the value chain.
EGT, which is mainly involved in research and experimental development of environmental and clean technologies, is a joint venture, and prior to the deal was 75 percent held by Neonlite Investments, 5 percent held by Chew Hwee Hong and 20 percent held by SMRU, the filing said.
Prior to the deal, Semb-Eco, which is mainly an investment holding company, was 30 percent held by Neonlite Investments, 15 percent by Chew Hwee Hong and 55 percent by SMRU, it said.