The Directors of Keppel Corporation Limited (KPELF)
(Keppel) announced the sale of 100 percent stake in Cathodic Protection Technology Pte Ltd (CP Tech) by Keppel Integrated Engineering to the management team at CP Tech for a total cash consideration of S$3.9 million.
CP Tech is one of the largest providers of cathodic protection systems in the Asia-Pacific region.
The divestment is in line with Keppel’s strategy of disposing its non-core assets.
Describing the deal, Yick Ping Wong, Managing Director of Keppel Engineering explained
, “We encourage entrepreneurship and support the management’s initiatives to further the growth of CP Tech independently.”
Tan Cheong Pin, the General Manager of CP Tech said
, “I am grateful for Keppel’s support of the management buyout and our plans to grow CP Tech.”
The divestment is not expected to have any significant impact on the net tangible assets and earnings per share of Keppel for the financial year ending December 31.