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Publish Date : 24-Jul-2013

Singapore Technologies Engineering Ltd (ST Engineering) today announced that its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics) has, through its wholly owned subsidiary, Mobility Systems Pte Ltd, acquired a 90% equity interest in Technicae Projetos e Serviços Automotivos Ltda. (Technicae) for a purchase consideration of BRL1.04m (approximately S$0.6m). Technicae's remaining 10% equity interest is held by Technicae's existing shareholder. The consideration was arrived at on a willing buyer willing seller basis, after taking into account Technicae's current projects and growth prospects. Following the acquisition, Technicae becomes a subsidiary of ST Kinetics.

As part of the acquisition agreement, ST Kinetics has further subscribed to an additional capital call of BRL3.96m (approximately S$2.3m) in proportion to its shareholding in Technicae, increasing its investment in Technicae to BRL5m (approximately S$2.9m).

The acquisition is part of ST Kinetics' strategic plan to establish a presence in Brazil to further its defence business in Brazil, and thereafter grow ST Kinetics' presence in the rest of South America.

Established in 2012 in Brazil, Technicae provides automotive maintenance, repair and overhaul services including automotive platforms revitalisation and modernisation projects, as well as related trade, import and export of parts and accessories for its predominantly military customers.

The acquisition 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.

ST Kinetics (Singapore Technologies Kinetics Ltd) is the land systems and specialty vehicles arm of Singapore Technologies Engineering Ltd. It is one of Asia's leading land systems and specialty vehicles companies, delivering smart engineering solutions since 1967 for the commercial, defence and homeland security markets. With more than 7,000 employees worldwide and revenue of over S$1.5b in FY2012, ST Kinetics delivers products and solutions to end users in more than 40 countries around the world; helping to maintain the peace of nations and increasing the productivity of businesses involved in earthmoving, road construction and goods distribution.

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