Singapore's SembMarine to take full control of PPL Shipyard

Singapore's SembMarine to take full control of PPL Shipyard

SINGAPORE - Singaporean rig builder Sembcorp Marine Ltd said it had agreed to buy the 15 per cent of PPL Shipyard Pte Ltd it did not already own for about $115 million from PPL Holdings Pte Ltd and E-Interface Holdings Ltd.

"This will enable the company to optimally manage the businesses, finance and resources of PPLS, and fully align the latter's corporate strategies to the company to generate sustainable returns," SembMarine said in a statement.

PPL Shipyard, 85 per cent owned by SembMarine, designs and builds oil rigs and ships.

Last week, SembMarine, which has been suffering from a slump in orders due to low oil prices, agreed to buy Norway-based ship design firm LMG Marin AS for $20 million.

In a separate statement, Yangzijiang Shipbuilding (Holdings) Ltd said it would receive about $51.8 million from the deal due to its 45 per cent stake in PPL Holdings. It plans to use the net proceeds for working capital.

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