ST Marine forms new JV with Hovertransport

Singapore Technologies Engineering has announced plans to form joint venture Hovertrans Solutions, through its marine arm.

This was an agreement signed with Hovertransport Consultants Ltd and Clearstone Investments LLC. ST Marine will hold 51% stake in Hovertrans Solutions; while the remaining 49% shareholding will be held equally between Hovertransport and Clearstone. Upon its incorporation, Hovertrans Solutions will become a subsidiary of ST Marine.

ST Marine paid US$600,000 (about $843,000) to acquire the intellectual property rights and other business considerations with another US$600,000 as working capital into the new Hovertrans Solutions.

Hovertrans Solutions seeks to exploit the use of hoverbarges for heavy lift in difficult terrain in the global oil and gas, and specialist transportation industries.

The set up of Hovertrans Solutions 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.