SIA Engineering Company has concluded transactions in two joint venture units, resulting in the divestment of shares and incorporating another as a wholly-owned subsidiary.
The first saw SIAEC divest its entire 20% stake in Jamco Singapore to Japanese MRO firm Jamco for S$3.97 million ($2.94 million). As such, Jamco Singapore has ceased to be an associate of SIAEC. This means that Jamco now owns 95% of Jamco Singapore, with Itochu Corporation owning the remaining 5%.
"SIAEC has been reviewing its portfolio of joint ventures for consolidation and growth and this transaction is part of its restructuring initiatives to focus on core competencies," says the Singapore Airlines MRO unit.
In addition, SIAEC acquired Jamco's 20% share in their Singapore Jamco Services (SJS) joint venture, for S$4.7 million. This results in SJS becoming a wholly-owned subsidiary of SIAEC, which will be renamed Singapore Aero Support Services.
"The acquisition is in line with SIAEC’s strategy to focus and grow its aircraft and cabin maintenance business," adds the company.
Both transactions are not expected to have a material impact on the net tangible assets per share or the earnings per share of the SIAEC Group in FY 2018/19.