KS Energy Acquires Interest SCE Controls & Engineering
KS Energy Services has acquired a 20% equity interest in SCE Controls & Engineering Pte. Ltd. comprising 56,105 ordinary shares of S$1.00 each in the capital of SCE, a company incorporated in Singapore.
SCE's main activities are those of trading, marketing and installation of valves and equipment for the oil and gas companies and chemical plants in PRC. The activities are synergistic with that of KS Energy and the Company expects SCE's business to be complementary to the Group's business.
The consideration of S$207,155 is approximately 4 times the net earnings of SCE based on the financial year ended December 31, 2005 financial statements. The SCE Acquisition will be funded by internal resources.
The SCE Acquisition is not expected to have any material impact on the Company's earnings per share and net tangible assets for the financial year ending December 31, 2006.