Eneco Energy (SGX:R14
) announced that it has entered into a sales and purchase agreement on April 24 with Union Steel (SGX:ZB9) for the acquisition of Fastweld Engineering Construction Pte Ltd for a total consideration of $4.3 million, which was determined on a willing-buyer and willing-seller basis.
Given that Union Steel holds approximately a 25.02% stake in Eneco Energy, this constitutes an interested person transaction (IPT), which the acquisition will be subjected to the approval of shareholders at an extraordinary general meeting (EGM).
Fastweld Engineering is an engineering procurement and maintenance contractor and engaged in the business of the installation of industrial machinery and equipment, mechanical engineering works, and the provision of process and industrial plant engineering design and consultancy services.
According to Eneco Energy, this acquisition will allow the company to diversify into a related industrial sector and provides an additional operating platform beyond logistics.
In terms of the financial impact, Eneco Energy’s net tangible asset (NTA) per share will drop to 0.80 cents from the previous figure of 0.88 cents as at June 30, 2025 on a pro forma basis.
Meanwhile, this acquisition will see Eneco Energy’s profit attributable to equity holders increase from $102,000 to $325,000 across the same period on a pro forma basis.
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Shares in Eneco Energy gained 0.1 cent or 12.5% up at 0.9 cents on April 27. Meanwhile, shares in Union Steel closed flat at 49.5 cents on the same day.
