See Hup Seng says it plans to acquire the remaining 49% stake in TAT Petroleum for $28.4 million to strengthen the group’s earnings base.

See Hup Seng already owns equity interests of 51% in TAT Petroleum, and intends to purchase the remaining 49% stake from vendors Ang Keng Boon, Tan Thoo Chye, Tan Thoo Huat, Thong Kum Pue and Wong Soon Meng.

Under the terms of the sale and purchase agreement, the purchase is to be satisfied by a cash payment of $13.3 million and the issue of 54 million new shares in See Hup Seng at 28 cents each to the vendors.

When the proposed acquisition is completed, TAT Petroleum will be a wholly-owned subsidiary of See Hup Seng.

“This is expected to boost the Group’s future earnings streams by enabling it to reap the full benefit of TAT Petroleum’s exciting growth prospects in the distribution and supply chain management of refined petroleum products across Asia Pacific,” says See Hup Seng in an SGX statement.