Archive News in Year 2010

February 2010

ST Electronics Divests Shares In Subsidiary
ST Electronics-PCI Co., Ltd. In China

Singapore, 3 February 2010 — Singapore Technologies Electronics Limited (ST Electronics) today announced that its subsidiary, ST Electronics (Shanghai) Co., Ltd (ST Electronics Shanghai) has entered into an agreement to sell its entire 51% equity interest in ST Electronics-PCI Co., Ltd. (STE-PCI) in Guangzhou, China to one of its joint venture partners, Guangzhou Pacific City International (Group) Co Ltd (GPCI).  The cash consideration is RMB7.14M (about S$1.47m), arrived at on a willing buyer willing seller basis taking into consideration the net book value of STE-PCI.  The sale is subject to Chinese regulatory approval. 

STE-PCI was set up as a joint venture in 2004 to facilitate and strengthen Singapore Technologies Electronics Limited (ST Electronics)’s marketing efforts on its rail electronics products and systems in Guangzhou and South China.  The joint venture partners are ST Electronics Shanghai, Pacific City International Holdings Limited and GPCI.  Consequent to the sale, STE-PCI will cease to be a subsidiary of ST Electronics.

This divestment 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.

The divestment of STE-PCI is a result of an ongoing business review to streamline operations, enhance marketing channels and lower cost structures.  ST Electronics will focus on its core rail electronics products and systems development for the China market while STE-PCI will continue to market and sell ST Electronics’ rail electronics systems and perform local installation of these systems to customers in Guangzhou and South China.

ST Electronics, the electronics arm of ST Engineering, delivers innovative system solutions to government, commercial, defence, and industrial customers worldwide. With a presence in more than 30 cities in 20 countries, ST Electronics markets its solutions to more than 80 countries internationally. It specialises in the design, development and integration of advanced electronics and communications systems, such as broadband radio frequency and satellite communication, e-Government solutions, information communications technologies and IT, rail and traffic management, real-time command and control, modelling and simulation, interactive digital media, intelligent building management and information security. Please visit www.stee.stengg.com.

Media contact:

Magdalen Loh
AVP / Head, Corporate Communications
Singapore Technologies Electronics Limited
Tel: (65) 6413 1788 / 9822 3321
Fax: (65) 6484 8840
Email: magloh@stee.stengg.com