Sembcorp Marine's wholly-owned subsidiary SMOE Pte Ltd. divested 30 percent of its 49 percent equity stake in HQSM Engineering Pte Ltd (HQSM) to China Huanqiu Contracting & Engineering Corporation (HQC), the majority shareholder of HQSM.
The transaction comprises 1.2 million ordinary shares, representing 30 percent of the share capital of HQSM, for an aggregate cash consideration of $4.5 million (SGD 5.7 million). HQC is a subsidiary of China National Petroleum Corporation - China's largest oil and gas company.
"The consideration was arrived at on a willing buyer, willing seller basis taking into account the carrying value of HQSM’s assets. The book value of the 30 percent stake in HQSM was $3.1 million (SGD 4 million) as at May 31, 2013," said Sembcorp Marine in a press release.
Following the divestment, SMOE will retain a 19 percent equity stake in HQSM.
HQSM was established in March 2007 as a joint venture company between SMOE and HQC. The key activities of the HQSM include the engineering and construction of onshore plants.
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