Company Briefs: Petra Foods

Petra Foods

Chocolate confectionery firm Petra Foods has agreed to settle a commercial dispute relating to the sale of Petra's cocoa ingredients business to Barry Callebaut, which was completed on June 30, 2013, and for which Barry

Callebaut had sought an adjustment of US$103 million (S$145 million).

Under the settlement, Petra Foods will pay US$38 million plus interest of US$800,000 as an adjustment to the

closing price and in consideration of full and final settlement of all claims.

After taking into account this settlement, Petra's overall pre-tax gain on the sale of the cocoa ingredients business amounts to US$46.1 million. It will have cash in excess of US$100 million, the majority of which comprises the proceeds from the sale of the cocoa ingredients business.

Following this, the group will recognise a one-time exceptional charge of

US$19.4 million, which is likely to result in a net loss for the third quarter and a drag on full-year earnings.

Raffles Medical Group

Raffles Medical Group said its wholly-owned subsidiary, Raffles SurgiCentre, has agreed to acquire a majority stake in a clinic chain for US$24.5 million (S$34.5 million).

It is acquiring a 55 per cent stake in International SOS (MC Holdings) from AEA International Holdings.

International SOS (MC Holdings) provides comprehensive clinical care through 10 clinics in China, Vietnam and Cambodia.

Maybank Kim Eng Research said that the purchase - the first overseas acquisition by Raffles Medical since 1997 - would result in insignificant earnings contribution but is a good springboard to gain instant access to new markets.

Expect synergies from patient referrals to its Singapore hospital and future China hospital, it noted.

ST Engineering

Singapore Technologies Engineering yesterday said its joint venture agreement between its unit, ST Aerospace Resources, and Wings Capital Partners Holdings has been terminated.

The joint venture, WingStar, was set up to acquire mid-life to end-of-life aircraft for lease, conversion or part out.

The parting of ways was a result of differing views on the strategic focus and operational plans.

Despite this, ST Engineering's aerospace arm will continue to tap on opportunities created by the global aircraft fleet expansion and renewal, to build up a portfolio of mid-life and end-of-life aircraft assets focused on Airbus A-320 and Boeing 737NG family.

This has led ST Aerospace Resources to incorporate Keystone Holdings (Global), which serves as a holding company for aircraft leasing investments.

A version of this article appeared in the print edition of The Straits Times on September 01, 2015, with the headline 'Company Briefs: Petra Foods'. Print Edition | Subscribe