Singapore Rig Builder Sembcorp Marine Takes Full Control at PPL Shipyard

SINGAPORE, Aug 23 (Reuters) – Singaporean rig builder Sembcorp Marine Ltd said it had agreed to buy the 15 percent 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 percent 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 percent stake in PPL Holdings. It plans to use the net proceeds for working capital. (Reporting by Aradhana Aravindan; editing by David Clarke)

(c) Copyright Thomson Reuters 2016

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