Beng Kuang Marine has entered into an agreement to acquire the remaining 49 per cent of Asian Sealand Offshore and Marine for SG$60 million ($45 million). The deal will see the target become a wholly-owned subsidiary of the group, which currently holds a 51 per cent interest.
The purchase price includes SG$20 million in cash and SG$20 million in new shares issued at SG$0.35 each. Beng Kuang Marine stated that up to SG$20 million in additional cash is expected to be paid as deferred consideration based on performance in 2026 and 2027.
The company reported that the acquisition is based on an internal valuation of SG$122 million for the target group. This figure represents a price to earnings ratio of approximately eight times the profit after tax recorded in 2025.
Asian Sealand Offshore and Marine generated revenue of SG$75.21 million and a profit after tax of SG$14.94 million during the 2025 financial year. Beng Kuang Marine noted that the acquisition is earnings accretive.
"The proposed acquisition will allow the company to increase its equity interest in the target from 51 per cent to 100 per cent, thereby enabling the group to fully consolidate the financial performance of the target group and enhance the group’s earnings attributable to the shareholders," the company said.
This strategy is expected to provide greater operational flexibility and allow the group to capture future growth, according to the group.
Completion remains subject to shareholder approval at an extraordinary general meeting and the issuance of an independent valuation report. The company plans to fund the acquisition through internal cash and bank financing.
