ST Electronics headquarters in Singapore. Photo: ST Electronics

[Via Satellite 01-19-2016] Singapore Technologies Electronics (ST Electronics), has entered into a conditional share purchase agreement to acquire a 51 percent equity interest in SP Telecommunications (SPTel) from Singapore Power Limited (SP) (proposed transaction) for a purchase consideration estimated at SG$54 million, to be finalized post-closing, subject to a maximum of SG$60 million (purchase consideration). SP will retain a 49 percent equity interest in SPTel, a company that owns, builds and operates communication and infrastructure services in Singapore. SPTel owns an extensive network of fiber optic back-haul infrastructure and facilities.

Subject to regulatory approvals, the proposed transaction is anticipated to close by second quarter of 2017. On closing, ST Electronics, SP and SPTel will enter into a shareholders’ agreement to regulate the respective rights and responsibilities of ST Electronics and SP as shareholders of SPTel.

The proposed transaction is in line with ST Electronics’ strategy to build a more comprehensive suite of Info-Communications Technology (ICT) solutions and services in areas such as smart cities.