Singapore Technologies Engineering Ltd (ST Engineering) announced that its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics) has, through its wholly owned subsidiary, Mobility Systems Pte Ltd, acquired a 90 per cent equity interest in Technicae Projetos e Serviços Automotivos Ltda. (Technicae) for a purchase consideration of about S$0.6 million. Technicae’s remaining 10 per cent equity interest is held by Technicae’s existing shareholder.

The consideration was arrived at on a willing buyer willing seller basis, after taking into account Technicae’s current projects and growth prospects. Following the acquisition, Technicae becomes a subsidiary of ST Kinetics.

As part of the acquisition agreement, ST Kinetics has further subscribed to an additional capital call of approximately S$2.3 million in proportion to its shareholding in Technicae, increasing its investment in Technicae to approximately S$2.9 million.

The acquisition is part of ST Kinetics’ strategic plan to establish a presence in Brazil to further its defence business in Brazil, and thereafter grow ST Kinetics’ presence in the rest of South America.