Sembcorp Marine announced that it will have complete control of PPL Shipyard Pte Ltd (PPLS) Board after a decision by the Court of Appeal (COA) in Singapore.
The company said PPL Holdings (PPLH), which has a 15 percent stake in PPLS, lost the right under the Joint Venture Agreement to appoint its nominees to PPLS’s Board as a result of the COA decision, which gives Sembcorp Marine the right to appoint PPLS’s Chairman, Deputy Chairman, Managing Director and Deputy Managing Director.
"The Court of Appeal in its judgment today ruled that certain provisions in the Joint Venture Agreement between Sembcorp Marine and PPL Holdings premised on equal shareholding no longer applied when Sembcorp Marine increased its shareholding from 50 percent to 85 percent in PPLS," Sembcorp Marine said in a press release.
There will be no change in the consolidation of PPLS as an 85 percent-owned subsidiary of Sembcorp Marine as the COA did not agree that the company had the right to terminate the Joint Venture Agreement with PPLS.
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