Boustead Singapore has, on Dec 30, entered into a sale and purchase agreement with Chip Eng Seng Construction for the sale of its entire stake in its wholly-owned subsidiary, Boustead Salcon Water Solutions.

Chip Eng Seng Construction, which is the wholly-owned subsidiary of Chip Eng Seng Corporation, bought 110,216,644 ordinary shares from Boustead Singapore for a consideration of $7.28 million.

The consideration sum is to be done via telegraphic transfer for value or by cashier’s order on the date of completion of the disposal.

The disposal excludes Boustead Salcon Water Solutions’ subsidiaries Boustead Salcon Processes and Salcon-Thai Company Limited (the foreign group companies).

SEE: CGS-CIMB maintains 'buy' for Boustead Singapore and Boustead Projects with raised target prices

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As part of the disposal, Boustead Singapore has entered into a buy back agreement with Boustead Salcon, where it will purchase the foreign group companies from the latter.

Boustead Singapore says the disposal will allow the group to redeploy the sum received into its “other core businesses and to re-strategise and re-allocate its management and financial capital resources”.

The consideration was arrived at on a willing-buyer willing-seller basis after taking into consideration, among other things, the book value of the assets and liabilities of Boustead Salcon for the financial period ended Sept 30.

The disposal is expected to have a positive impact on Boustead Singapore’s earnings per share (EPS) for the current financial year ending March 31, 2021.

As of the completion of the disposal on Dec 30, Boustead Salcon is no longer a subsidiary of Boustead Singapore.

Shares in Boustead Singapore closed 0.5 cent higher or 0.6% up at 80.5 cents on Dec 30.