SINGAPORE - Singapore Technologies Engineering (ST Engineering) on Tuesday (Nov 19) said it has divested its pilot training business in Australia for $9.3 million on a cash-free and debt-free basis to Regional Express Holdings.
This was done through the sale of its entire stake in Aviation Training Academy Australia (ATAA) and ST Aerospace Academy (Australia) (STAA(A)), which will cease to be subsidiaries of the group.
The divestment is part of its "ongoing efforts to optimise its business portfolio", the mainboard-listed integrated engineering group said in a regulatory filing. It was arrived at after taking into account current market conditions and the financial positions of ATAA and STAA(A).
ST Engineering added that the net asset values of ATAA and STAA(A) as at Oct 31, are about $5.3m and $3.0m respectively.
Buyer Regional Express is an Australian regional airline which operates some 1,500 weekly flights to 60 destinations throughout all states in Australia. Its parent, Rex Group, also consists of units Pel-Air Aviation, an air freight, aeromedical and charter operator, and the Australian Airline Pilot Academy.
ST Engineering said the divestment is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the group for the current financial year.
The counter closed at $4.20 on Monday, down one cent or 0.2 per cent.