Yangzijiang Shipbuilding and a Middle Eastern investor will buy an indirect stake in PPL Shipyard for S$155m ($113m).
Yangzijiang said it will purchase Baker Technology’s BASE.SI fully-owned vehicle PPL Holdings, which owns a 15% stake in the Singapore oil-rig maker, reports Reuters.
The acquisition will see the Chinese shipbuilder get a 50.1% stake in the business, the Middle Eastern investor 45% and 4.9% will go to Yangzijiang’s non-executive director Yu Kebing.
Yangzijiang said it will partially fund the deal by issuing 83.55 million new shares at $1.295 each to the investor to raise about S$77.65m ($56.24m).
PPL shipyard is 85% owned by Sembcorp Marine.