Penta-Ocean to invest in Singapore's Koh Brothers Eco Engineering
SINGAPORE, NNA - Japanese marine contractor Penta-Ocean Construction Co. will invest S$38.07 million (US$28 million) in industry peer Koh Brothers Eco Engineering Ltd. to strengthen its business in Singapore.
Penta-Ocean will purchase all 810 million new shares to be issued by Ko Brothers Eco Engineering through third-party allotment, with the acquisition date set for May 28, the Tokyo-based company said in press release on Monday.
The deal will make Penta-Ocean the second-largest shareholder of Ko Brothers Eco Engineering with an equity stake of somewhere between 25.06 and 28.84 percent, depending on how outstanding warrants are exercised.
Koh Brothers Group Ltd., listed on the Mainboard of the Singapore Exchange, will remain its top shareholder with 54.54-54.99 percent.
"We have head-office functions in Singapore for our international operations and see the country as the most important (overseas) hub," a Penta-Ocean spokesperson has told NNA. "Hopefully the capital alliance with Koh Brothers Eco Engineering will reinforce our business base and create synergy."
Penta-Ocean is currently working with Koh Brothers Building and Civil Engineering Contractor Pte. Ltd., a wholly owned subsidiary of Koh Brothers Eco Engineering, to build two undersea tunnels in Singapore's large-scale Deep Tunnel Sewerage System project.
Penta-Ocean's latest move follows its acquisition of all shares in UG M&E Pte. Ltd., a mechanical and electrical engineering contractor, in 2020 in efforts to beef up its business in Singapore. (NNA/Kyodo)