SINGAPORE (Jan 30): SIA Engineering Company (SIA EC) has sold its entire 20% stake in Jamco Singapore, to the latter’s majority owner Jamco Corporation for $3.97 million in cash, representing a 43% premium to net value.

Based on the JV’s audited financial statement for FY18, the net asset value of shares disposed of by SIA EC is $2.77 million.

Jamco Singapore was a 20:75:5 joint venture between SIA EC, Jamco and Itochu Corporation. It is based in Singapore and manufactures aircraft galleys, seats and cabin parts.

Post the completion of the sale, Jamco now owns 95% of the JV with Itochu Corporation continuing to hold the remaining 5%, with Jamco Singapore ceasing to be an associated company of SIA EC.

SIA EC says in a Tuesday filing that the transaction comes as part of its restructuring initiatives to focus on core competencies as it reviews its portfolio of JVs for consolidation and growth.

The group does not expect the transaction to have a material impact on its net tangible assets (NTA) per share for the current financial year.

Shares in SIA EC closed flat at $2.50 on Tuesday.