Singapore Technologies Engineering Ltd (ST Engineering) has divested its pilot training business in the USA through the sale of all of its shares in Aviation Academy of America (AAA) and VT Aviation Services (VTAS) to Vaayu Aerospace. The share sale is completed at a cash consideration of US$1.5m (approximately S$2m) on a cash-free and debt-free basis, which was arrived at after taking into account the current market conditions and financial positions of AAA and VTAS.
With this divestment, which does not impact the Group’s pilot training business in Singapore and Australia, AAA and VTAS cease to be subsidiaries of ST Engineering.
This divestment is not expected to have any material impact on ST Engineering’s consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.