SMOE Pares Stake in HQSM Engineering



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.



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

RELATED COMPANIES