Singapore, 19 November 2019 – Singapore Technologies Engineering Ltd (ST Engineering) today announced the divestment of its pilot training business in Australia through the sale of all of its shares in Aviation Training Academy Australia Pty Ltd (ATAA) and ST Aerospace Academy (Australia) Pty Ltd (STAA(A)) to Regional Express Holdings Ltd (REX Holdings).
The share sale is completed at a cash consideration of $9.3m on a cash-free and debt-free basis, which was arrived at after taking into account the current market conditions and financial positions of ATAA and STAA(A). The net asset values of ATAA and STAA(A) as of 31 October 2019 are approximately $5.3m and $3.0m respectively.
With this divestment, which is part of the Group’s ongoing efforts to optimise its business portfolio, ATAA and STAA(A) cease to be subsidiaries of ST Engineering.
The divestment is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.