SSE is in the business of fabricating onshore and offshore platforms for the oil and gas industry.

In a statement SembCorp said, “The divestment is in line with SembCorp Utilities’ strategy of focusing on integrated utilities and energy businesses and its objective to enhance shareholder value.

“The divestment, conditional upon approval of relevant authorities in Malaysia, is expected to be completed within three months from the date of the SPA,” it added.

According to Sime Darby, in a release to the KLSE Bourse, “[We have] entered into a SPA with SembCorp Utilities for the acquisition of 12 million ordinary shares of RM1.00 (US$3.80) each representing 30% of the issued and paid-up share capital of Sime SembCorp Engineering.”

“SSE is a 70% owned subsidiary of Sime Engineering Services Berhad (SESB), which in turn is a 70% owned subsidiary of Sime Darby. With the acquisition of the remaining 30% of the equity of SSE by Pesida, Sime Darby will have an effective equity interest of 79% in SSE via its subsidiaries, Pesida and SESB.

“The completion of the SPA is conditional upon the approvals of the Foreign Investment Committee and the Ministry of International Trade and Industry [and] the acquisition does not require the approval of the shareholders of Sime Darby,” it added.