ST Engineering’s Electronics Arm Acquires 51% equity stake in SP Telecommunications Pte Ltd

January 18, 2017 Singapore

Singapore Technologies Engineering Ltd (ST Engineering) today announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics), has entered into a conditional share purchase agreement to acquire a 51% equity interest in SP Telecommunications Pte Ltd (SPTel) from Singapore Power Limited (SP) (Proposed Transaction) for a purchase consideration estimated at S$54m, to be finalised post-closing, subject to a maximum of S$60m (Purchase Consideration). SP will retain a 49% equity interest in SPTel.

SPTel owns, builds and operates communication and infrastructure services in Singapore. It owns an extensive network of fibre optic back-haul infrastructure and facilities.

Details of the Proposed Transaction
The Purchase Consideration will be funded internally by ST Electronics and will be satisfied fully in cash on closing, and was arrived at, after arm’s length negotiations between the parties, taking into account SPTel’s net assets, current financial performance and future growth prospects. The unaudited consolidated net tangible assets (NTA) of SPTel as at 31 October 2016 is S$100m.

Subject to regulatory approvals, the Proposed Transaction is anticipated to close by second quarter of 2017. On closing, ST Electronics, SP and SPTel will enter into a shareholders’ agreement to regulate the respective rights and responsibilities of ST Electronics and SP as shareholders of SPTel.

Rationale for the Proposed Transaction
The Proposed Transaction is in line with ST Electronics’ strategy to build a more comprehensive suite of Info-Communications Technology (ICT) solutions and services in areas such as Smart City.

The combination of the ICT expertise of ST Electronics and the assets of SPTel will further enhance ST Electronics’ capabilities in providing ICT solutions for enterprise customers.

Financial Effects
The Proposed Transaction 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.

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ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenue of S$6.54b in FY2014 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, FTSE ASEAN 40 Index, MSCI Singapore and other indices. ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries. Please visit www.stengg.com for more information.

ST Electronics (Singapore Technologies Electronics Limited) is the electronics arm of Singapore Technologies Engineering Ltd, one of the largest public-listed companies on the Singapore Stock Exchange. ST Electronics is a global engineering company specialising in the design, development and integration of advanced electronics and communications systems. Our capabilities are in Rail & Intelligent Transportation; Satellite & Broadband Communications; Info Comm Technologies; Command & Control operations, Training & Simulation; Intelligent Building & Security Systems and Cybersecurity. We have a presence in over 20 countries spanning North America, Latin America, Europe, Africa, the Middle East, China, India and Southeast Asia. For more information, please visit www.stengg.com/en/electronics.

Media contacts:

Lina Poa
SVP, Corporate Communications
ST Engineering
Tel: (65) 6722 1883
Email: linapoa@stengg.com

Agnes CHANG
Assistant Vice President, Corporate Communications
ST Electronics
Tel: (65) 6413 1788
Email: chang.chehhong.agnes@stee.stengg.com