Shares & Derivatives
ST Engineering’s Acquisition – Would this move the needle?
By Dr Wealth  •  October 27, 2021
Last week, ST Engineering announced an acquisition deal that caused its stock to go up by a mere 3%. I studied this new deal to find out if it’s actually beneficial for the company and most importantly, for us investors. What’s the deal and why should we care? Singapore Technologies Engineering Ltd (ST Engineering) signed an agreement with Roper Technologies Inc. to purchase all of the ownership interests in TransCore Partners, LLC and TLP Holdings, LLC (collectively known as TransCore). The total purchase price for these acquisitions is US$2.68 billion (S$3.62 billion). This is a significant development because prior to the announcement, the company’s market capitalisation was at S$11.73 billion (volume-weighted average price of S$3.76 per share), and this transaction will now represent 30.8% of ST Engineering’s market capitalisation. The net income of the acquisition also accounts for 21.3% of ST Engineering current’s net income. As of closing on 22 October 2021 and right after the announcement, ST Engineering’s stock price rose by a modest 3%...
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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