Temasek boosts stake in SAM Engineering


A worker at the production floor of Aviatron (M) Sdn Bhd, a subsidiary of Singapore Aerospace Malaysia, which produces nacelle beams for Boeing 787 and Airbus 350 aircrafts. SAM Engineering & Equipment Bhd is also a subsidiary of Singapore Aerospace Malaysia. Starpic Mustafa Ahmad (13/02/2014).
KUALA LUMPUR: Temasek Holdings (Pte) Ltd, through Singapore Aerospace Manufacturing Private Ltd (SAM Singapore) and SAM Singapore’s unit Singapore Precision Engineering Ltd (SPE), has boosted its shareholding in SAM Engineering & Equipment (M) Bhd from 56.46% to 70.14% by converting irredeemable convertible unsecured loan stocks (Iculs).

SAM Engineering, which makes parts for the aerospace and equipment industries, told Bursa Malaysia on Tuesday that SAM Singapore converted 83.025 million Iculs into 39.536 million SAM Engineering shares last Wednesday (May 25).

SAM Singapore is wholly owned by Accuron Technologies Ltd, which in turn is a unit of Temasek.

In April, SPE had sold 9.1 million shares in SAM Engineering directly to a group of purchasers. Therefore, the Iculs conversion did not raise its shareholding above the 75% threshold, which means the Singapore state investment fund still complies with Bursa Malaysia’s minimum 25% public shareholding spread requirement.  

In an article published on Monday titled “Will Temasek convert Iculs in SAM Engineering?”, StarBiz had speculated that Temasek may convert its Iculs because SAM Engineering’s dividends would give it higher returns than the 4% whivh the loan stock pays. (Click here for the story)

For the financial year ended March 31, 2016, SAM Engineering reported an unaudited profit of RM63.09mil, up 82.2% from the previous year.

SAM Engineering shares slipped 3 sen to close at RM6.47 on Tuesday, with 59,700 shares changing hands.

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