SembCorp Marine Ltd (SCM), Singapore's largest ship repairer, said on Monday it acquired a 50 percent stake in Singapore-based PPL Shipyard Pte Ltd f
or S$16 million ($8.8 million).
The purchase would be financed through internal funds, it said in statement to the Singapore Exchange (S68.SI)
PPL is involved in the oil rig, vessel construction and steel fabrication businesses. It recently secured a contract for the construction of two jack-up drilling rigs, worth $125 million each, from Santa Fe International Corp.
"PPL has established a strong track record in rig buildings and our acquisition will give us a foothold in this business," a company official said.
"Furthermore, rig building has a strategic fit with our core businesses of ship repair, ship building, ship conversion and offshore engineering."
The acquisition was not expected to have a material impact on the earnings and net tangible assets of SCM.