Link: https://links.sgx.com/1.0.0/corporate-announcements/R8GIADDS8QP5AGWH/f193158f164b8d58bc32f50b8b83ba2ff9c668967947b7964ba5f8bfa3512cae

Summary:

• Federal International (2000) Ltd has signed a binding term sheet to dispose of its entire 30% stake in Indonesian fabricator PT Gunanusa Utama Fabricators and settle US$13.26 million of debt owed by PTG.

• The proposed consideration totals US$18.91 million, comprising US$10.5 million in cash and 200 million shares in PT Superkrane Mitra Utama Tbk valued at about US$8.41 million.

• Upon completion, Federal will cease to be a shareholder of PTG but will deepen its exposure to SK, lifting its stake from 208.8 million to 408.8 million shares and securing the right to appoint one commissioner to SK’s board.

• The transaction is expected to lift Federal’s NTA per share from 47.47 to 49.30 Singapore cents and boost EPS from 2.76 to 4.67 cents on a pro forma FY2024 basis.

• Classified as a major transaction under SGX rules, the deal is subject to shareholder approval and customary regulatory and contractual conditions, with a long-stop date of 30 June 2026.