Singapore Technologies Engineering said it acquired selected rig repair assets from World Marine of Mississippi in the United States for about S$34 million.
ST Engineering bought certain rig repair assets adjacent to its existing yard in Mississippi through its subsidiary Vision Technologies Marine, the company said in a statement on August 25.
"Since the downturn of the offshore and marine industry, the group has been looking to acquire assets that represent long-term value and can enhance its capabilities whilst offering scale advantages in the marine repair segment," ST Engineering said in a regulatory filing.
Situated in a prime location in the Gulf of Mexico and with close proximity to VT Halter Marine's Pascagoula yard, the acquired assets will enable ST Engineering to leverage resources and derive greater synergies in its ship repair business.
The company funded the purchase consideration internally, it said.
This acquisition 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.
Shares in ST Engineering were unchanged at S$3.55 on the Singapore Exchange. The stock has gained 10 percent so far this year.
