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Penta-Ocean Construction Co., Ltd.
Takuzo Shimizu, President, CEO and Representative Director
Acquisition of All Shares of Singapore’s M&E Engineering Contractor
Tokyo, Japan – May. 11, 2020 –Penta-Ocean Construction Co., Ltd. hereby announces that the Company has decided to acquire all shares of UG M&E Pte. Ltd. (CEO, Tai Chee Yick, Singapore), a Singapore’s leading M&E engineering contractor and to make it a subsidiary. Penta-Ocean has concluded the sale and purchase agreement with Greatearth Pte. Ltd. (CEO, Galen Goh Eng Hwee, Singapore), the parent company of UG M&E.
1.Purpose of the acquisition of shares
Penta-Ocean has had more than 55 years of experience in Singapore since 1964, involving in a large number of large-scale projects from reclamation to civil engineering and building construction works. In recent years, in the building construction business, Penta-Ocean has successfully completed numerous iconic large-scale projects such as ION Orchard and Sengkang General Hospital, etc. Sustainable growth in the building construction business requires further diversification of the business fields and strengthening of the business base such as technological capabilities and personnel. One of these factors is strengthening of the M&E capability.
UG M&E, founded in 1966, is the leading M&E engineering contractor with the highest graded qualification for M&E engineering in Singapore. UG M&E has a track record of large-scale M&E engineering works for Singapore’s landmark projects such as ION Orchard, Marina Bay Sands, Jewel Changi Airport, etc. Its experienced management team and excellent technological capabilities have earned a high praise and trust in Singapore. Penta-Ocean has the experience of collaboration with UG M&E, a nominated subcontractor of the developer of Ion Orchard.
We are convinced that Penta-Ocean and UG M&E will exert the synergistic effects for both companies, through utilizing each other's strengths and collaborating in all aspects of sales, technologies, human resources, etc.
2.Outline of UG M&E
|Company Name||UG M&E Pte. Ltd.|
|Location||10 Ang Mo Kio Street 65 #06-03 Techpoint
|Representative Director||CEO, Tai Chee Yick|
|Main Business||Electrical Engineering/ Air-Conditioning, Refrigeration & Ventilation/ Mechanical Engineering Works|
|Shareholder||Greatearth Pte. Ltd. 100%|
|Turnover||Approx. S$65M (\5bn) (averaged for last 5 years)|
3.Impact on the earnings forecasts
The impact of the acquisition of shares on the consolidated financial results for the fiscal year ending in March 2021 is expected to be minimal.