ST Engineering Increase Stakes in Mexican JV
Singapore Technologies Engineering Ltd (ST Engineering) today announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics) has subscribed to a capital call of MXN7.5m (about S$0.7m) from GFM Electronics S.A. de C.V. (GFM Electronics). This additional capital subscription increases ST Electronics’ shareholding in GFM Electronics from 50% to 51%, resulting in GFM Electronics becoming a subsidiary of ST Electronics.
Upon completion of the capital injection, the issued and paid up capital of GFM Electronics will be increased from MXN34.7m (about S$3.3m) to MXN49.9m (about S$4.7m).
GFM Electronics, formed in 2000 by ST Electronics and Grupo Ferrominero, S.A de C.V. (GFM) to promote, distribute and sell ST Electronics products and services in Mexico will use the injected funds for business development activities in Mexico and regional markets in Latin America in the areas of Public Safety and Security as well as Smart City projects.
This additional capital injection into GFM Electronics 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.