ST Engineering and Singapore Power to sell JV for $290m

The broadband joint venture will be acquired by Seraya AQX.

Singapore Technologies Engineering’s wholly-owned subsidiary, ST Engineering Urban Solutions, and Singapore Power Limited (SP) have agreed to sell their joint venture SPTel for an enterprise value of $290m.

The buyer, AQX, is a digital infrastructure investment platform wholly owned by infrastructure investment firm Seraya Partners.

SPTel is a provider of enterprise broadband connectivity and value-added services delivered over a fibre optic network. 

“This proposed transaction will enable SPTel to grow under a new owner whose primary mandate is in investing and growing digital infrastructure platforms. With this strategic alignment, SPTel will be better placed to scale and to provide a more diverse network in Singapore,” ST Engineering and SP said in their joint statement on 17 July.

SPTel reported a revenue of $72m and a net loss of $4m for the year end of 2024.

The divestment will result in a one-off gain of $80m for ST Engineering based on its carrying value for SPTel of $65m. 

Other than the one-off gain mentioned, the proposed transaction is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

The proposed transaction is expected to close in Q4 2025, subject to customary closing conditions, including the approval of the Infocomm Media Development Authority of Singapore.