SIA Engineering announced late last Friday that it is divesting its entire stake in its wholly owned subsidiary Aircraft Maintenance Services Australia (AMSA) for A$4.5 million (S$4.4 million) in cash to aircraft leasing company Heston Services.
AMSA is based in Australia, and is in the business of providing line maintenance services in major Australian airports.
The negative net tangible asset value of SIA Engineering's stake in AMSA is A$1.1 million, based on AMSA's audited financial statements for the financial year ended March 31.
In a filing to the Singapore Exchange, SIA Engineering said that the divestment is in line with its overall strategy to "streamline and rationalise its line maintenance international operations, and to focus on areas of high growth potential and competitive advantage".
The divestment of AMSA is expected to result in a gain of approximately $5.5 million for SIA Engineering for the financial year ending March 31 next year. The completion of the transaction is subject to conditions set in the agreement with Heston.
The divestment is not expected to have a material impact on the net tangible assets per share or the earnings per share of the group in FY2018/2019.
IHH Healthcare confirmed yesterday that the Indian Supreme Court has put on hold its acquisition of Fortis Healthcare, but said that its subscription for a 31.1 per cent stake in the target is not affected by the ruling.
IHH said that it is currently evaluating the order and seeking appropriate legal advice, and will make appropriate announcements should there be further material developments.
IHH said that the Indian court last Friday passed an order directing that the status quo with regard to the sale of the controlling stake in Fortis Healthcare to Malaysian IHH Healthcare be maintained. The decision was first reported last Saturday by Malaysian publication The Star BizWeek.
As a result, IHH's wholly owned subsidiary, Northern TK Venture (NTK), will not be able to proceed with an open offer for Fortis until further orders, clarifications or directions are issued by either or both of the Indian Supreme Court and the Securities and Exchange Board of India.
IHH clarified that the order does not impact the share subscription completed on Nov 13, which gave IHH a 31.1 per cent stake in Fortis through NTK.