SINGAPORE (Aug 25): ST Engineering announced its subsidiary, Vision Technology Marines, has acquired selected rig repair assets adjacent to its existing yard, VT Halter Marine in Pascagoula, Mississippi.

The assets of World Marine of Mississippi (WMM) were bought for a consideration of US$25 million ($34 million) and comprises a purpose-built facility of 94 acres for heavy marine fabrication as well as offshore oil and gas rig upgrades, repairs and conversions.

Situated in the Gulf of Mexico and close proximity to VT Halter Marine’s Pascagoula yard, the acquired assets will enable the group to leverage resources and derive greater synergies in its ship repair business.

The unaudited net book value of the fixed assets of WMM as at Dec 31, 2016 was about US$14 million ($19 million).

The purchase was funded internally and was satisfied fully in cash at closing.

Since the downturn of the offshore and marine industry, ST Engineering has been looking to acquire assets that have long-term value, enhance its capabilities and offer scale advantages in the marine repair segment.

Shares in ST Engineering last traded at $3.55 on Friday.