Sembmarine, together with subsidiaries Sembcorp Marine Repairs and Upgrades (SMRU) and Semb-Eco, entered into the agreement to exchange 10m ordinary shares representing 20% of the issued share capital of Ecospec for around 23.8m ordinary shares representing 45% of the issued share capital of Semb-Eco.
Sembmarine has an indirect 20% equity interest in Ecospec under a deal signed in 2012.
The share swap deal will see Ecospec assign to SMRU certain of its intellectual property and proprietary rights for a consideration of approximately SGD7.2m ($5.3m).
SMRU will also acquire five groups of Semb-Eco core patents, which are applied in the development of ballast water treatment, exhaust gas cleaning, biofouling control and corrosion control.
Semb-Eco is an investment holding joint venture firm between Neonlite Investments, Ecospec founder Chew Hwee Hong and SMRU.
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“Through this transaction, Sembmarine further strengthens its intellectual property and knowledge to facilitate research and development of solutions for the global offshore and marine sectors. This in turn supports our ongoing efforts to move up the value chain so that we can do more for our customers and partners,” said Wong Weng Sun, president and ceo of Sembmarine.
In consequence, Semb-Eco will become wholly-owned by Sembmarine while Ecospec will cease to be an associated company of the group.
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