See Hup Seng acquires stakes in TAT Petroleum for S$28.4 mln

The corrosion prevention provider strengthens resources with the acquisition of TAT Petroleum and appointment of new Executive Directors.

See Hup Seng Limited on Friday said it has completed the acquisition of its remaining 49% stake in TAT Petroleum Pte Ltd for a consideration of S$28.4 million, a release from the company said.

After the transaction, TAT Petroleum becomes a wholly-owned subsidiary of See Hup Seng and is expected to boost the group’s future earnings streams by enabling it to reap the full benefit of TAT Petroleum’s exciting growth prospects in the distribution and supply chain management of refined petroleum products across Asia Pacific, said the report from See Hup Seng.

Meanwhile, See Hup Seng has also strengthened its Board resources with the immediate appointments of Mr Jimmy Tan Thoo Thye and Mr Chan Huan Yong as Executive Directors of the Group. Mr Tan and Mr Chan are the Chairman and Chief Executive Officer, respectively, of TAT Petroleum.

Mr Thomas Lim Siok Kwee, Executive Chairman & CEO of See Hup Seng said, “As TAT Petroleum already contributes a significant portion of its revenue and profit to the Group, the Acquisition will have a significant positive impact on the Group’s net profit attributable to shareholders and earnings per share in the current financial year ending 31 December 2010. Moreover, the structuring of 53% of the consideration through the issue of new shares in See Hup Seng to the vendors of TAT Petroleum will align their interests with those of the Group’s shareholders and motivate them to enhance the value of See Hup Seng by continuing to grow TAT Petroleum’s business. We are also pleased to welcome Mr Jimmy Tan and Mr Chan Huan Yong as Executive Directors of See Hup Seng. We believe their experience and drive are important assets that will contribute towards strengthening the resources of our Board."