Shipyard operator Keppel Philippines Marine Inc. said it is increasing ownership in Subic Shipyard and Engineering Inc. (SSEI).
Keppel said in its disclosure that its board has approved the acquisition an additional 41.6 percent of Subic Shipyard from current owners. If the acquisition proceeds as planned, this will increase Keppel’s ownership in SSEI from the current 37.5 percent to 79.1 percent.
Sellers include Magsaysay Shipping Corp., International Container Terminal Services Inc., the Philippine government, SM Development Corp. and Insular Assurance Co.
“The Philippine sellers have decided to dispose of their interest in [SSEI] to concentrate on their core businesses,” Keppel said in its regulatory filing.
Keppel will purchase about P425.57 million shares worth about P2.77 billion.
This represents 58 percent of the company’s book value and about half of Keppel’s asset.
“The purchase price was arrived at on a willing-buyer and willing-seller basis, taking into account SSEI’s shipyard capacity, strength of its operations and competitive advantages,” the company said.
SSEI is expected to be active in ship repair and conversion works for international vessels in the next few years, the company said earlier.
Keppel posted a net profit of P185.19 million for the first three months of the year, up by 15 percent from the previous year’s P160.34 million. The bulk of its operation for the period was centered on ship repair.
Keppel said that its consolidated revenues reached P495.7 million or 16-percent lower than the previous year as a result of the shutting down of operations of its Cebu shipyard.
“Fabrication activities carried out by Keppel Batangas have also decreased with only one project carried over the first quarter of 2010 compared with three in the previous year,” Keppel said in a report.
Overall, revenues from its ship repair contributed more than 80 percent of its cash flow for the period, while the rest were from ship building and ship fabrication activities.
Revenues from its Subic Shipyard went down by 33 percent to P56.9 million from the previous year’s P84.9 million.
Keppel said in its disclosure that its board has approved the acquisition an additional 41.6 percent of Subic Shipyard from current owners. If the acquisition proceeds as planned, this will increase Keppel’s ownership in SSEI from the current 37.5 percent to 79.1 percent.
Sellers include Magsaysay Shipping Corp., International Container Terminal Services Inc., the Philippine government, SM Development Corp. and Insular Assurance Co.
“The Philippine sellers have decided to dispose of their interest in [SSEI] to concentrate on their core businesses,” Keppel said in its regulatory filing.
Keppel will purchase about P425.57 million shares worth about P2.77 billion.
This represents 58 percent of the company’s book value and about half of Keppel’s asset.
“The purchase price was arrived at on a willing-buyer and willing-seller basis, taking into account SSEI’s shipyard capacity, strength of its operations and competitive advantages,” the company said.
SSEI is expected to be active in ship repair and conversion works for international vessels in the next few years, the company said earlier.
Keppel posted a net profit of P185.19 million for the first three months of the year, up by 15 percent from the previous year’s P160.34 million. The bulk of its operation for the period was centered on ship repair.
Keppel said that its consolidated revenues reached P495.7 million or 16-percent lower than the previous year as a result of the shutting down of operations of its Cebu shipyard.
“Fabrication activities carried out by Keppel Batangas have also decreased with only one project carried over the first quarter of 2010 compared with three in the previous year,” Keppel said in a report.
Overall, revenues from its ship repair contributed more than 80 percent of its cash flow for the period, while the rest were from ship building and ship fabrication activities.
Revenues from its Subic Shipyard went down by 33 percent to P56.9 million from the previous year’s P84.9 million.