Koon Holdings, one of Singapore’s largest civil engineering, reclamation and shore protection specialists, says the company — together with JKM Engineers — have entered into a sale and purchase agreement with Jasper Investments to acquire the entire issued share capital of ECI Corporation for $5 million.

Under the terms of the agreement, Koon will acquire 75% of ECIC for $3.75 million, which will be funded wholly by internal resources. As at Dec 31, Koon has a healthy net cash position of $20.6 million. The remaining 25% of the issued share capital of ECIC has been acquired by JKM, a company engaged in the business of design, fabrication and production of precast concrete products.

ECIC is an approved precaster for Housing and Development Board (HDB) projects with a Building and Construction Authority (BCA) L6 grading for Precast Concrete Work and Basic Building Materials. This grading allows them to tender for public and private projects of an unlimited value.

ECIC’s wide range of precast products can be found in a series of HDB developments and upgrading works, including at Punggol, Sengkang and Clementi.

ECIC currently has projects worth an estimated $10.9 million. With the completion of the acquisition of ECIC, ECI Berjaya Sdn. Bhd. (ECIB) — which was formed in May 2007 to expand ECIC’s precast production capacity due to the shortage of land in Singapore — will also become an indirect subsidiary of Koon.