The move will yield a one-off gain of around S$48.1 million, based on the S$60.2 million carrying value for Starco
[SINGAPORE] ST Engineering has agreed to sell its entire 49 per cent interest in Shanghai Technologies Aerospace Company (Starco), a joint venture (JV) which provides airframe maintenance, repair and overhaul (MRO) services out of facilities in Hongqiao and Pudong in Shanghai.
Its wholly owned subsidiary, ST Engineering Aerospace, on Friday (Nov 14) entered into an agreement to dispose its interests in Starco to China Eastern Airlines, which as at Monday already owns 51 per cent of the JV, ST Engineering said on Monday.
China Eastern Airlines, which will own 100 per cent of Starco post-divestment, will buy the stake for a cash consideration of 680.5 million yuan (S$124.5 million) that will be paid in two tranches of 506.7 million yuan and 173.8 million yuan.
The divestment will yield a one-off gain of around S$48.1 million, based on the S$60.2 million carrying value for Starco.
The counter closed down S$0.19 or 2.2 per cent at S$8.49 on Friday.
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