Keppel lifts stake in Philippines shipyard

Keppel Philippines Marine is raising its interests in Subic Shipyard and Engineering Inc. (SSEI) and Consort Land Inc. (CLI) to support operations in the Philippines.

Offshore staff

SINGAPORE -- Keppel Philippines Marine is raising its interests in Subic Shipyard and Engineering Inc. (SSEI) and Consort Land Inc. (CLI) to support operations in the Philippines.

For $S86.5 million ($64 million) in cash, Keppel’s interest in SSEI goes from 44% to 83.9%, and in CLI from 33.7% to 38.7%.

SSEI, in Subic Bay, the Philippines, provides repair, conversion, and building services to shipowners and offshore operators. It also performs machinery reconditioning and steel fabrication for offshore and marine structures.

CLI owns 72 ha (178 acres) of land including the 20 ha (49 acres) housing SSEI.

Share purchase agreements should be completed in both cases by end-September, after which SSEI will become a Keppel subsidiary.

Keppel has invested over S$89.6 million ($66 million) in recent years in its Philippines facilities. The commitment has included upgrades to equipment and machinery at Keppel Batangas, expansion of the drydock and berthing areas, and the building of a new training hub and accommodation/amenities center for staff at Subic Shipyard.


08/03/2010

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