On 30 June 2016, mainboard-listed SIA Engineering Company Limited (“SIAEC” or the “Company”) announced that it had completed its divestment of its 10% stake in Hong Kong Aero Engine Services Ltd (“HAESL”) to Rolls-Royce Overseas Holdings Limited and Hong Kong Aircraft Engineering Company Limited in equal proportion. At the same time, HAESL completed its divestment of its 20% stake in Singapore Aero Engine Services Private Limited (“SAESL”) to Rolls-Royce Singapore Pte Ltd (“RRS”). The Company also announced that Rolls-Royce plc and SIAEC intend to amalgamate the business and operations of SAESL and International Engine Component Overhaul Pte Ltd (“IECO”), their second joint venture in Singapore, into a single entity. In furtherance of the proposed amalgamation, each of RRS and SIAEC’s 50% stake in IECO has been acquired by SAESL.
SIAEC wishes to announce the completion of the SAESL and IECO amalgamation (with SAESL being the surviving entity) on 2 October 2016. The amalgamated company will be able to generate greater operational efficiencies, economies of scale and synergies from better allocation of resources and streamlining of business processes. This will position SAESL, in which SIAEC and RRS now each have a 50% stake, to compete more effectively for the global engine and component repair business.
The amalgamation is not expected to have a material impact on SIAEC’s financial performance in FY2016/17. None of the Directors of SIAEC has any interest, direct or indirect, in the amalgamation.
