Eneco Energy Limited has announced its intention to acquire Fastweld Engineering Construction Pte. Ltd. for S$4.3m. The acquisition, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM), is expected to enhance Eneco’s revenue base by integrating Fastweld’s engineering capabilities with its existing logistics operations.
The acquisition will see Eneco Energy’s wholly-owned subsidiary, Eneco Singapore Pte. Ltd., purchase 100% of Fastweld’s issued and paid-up share capital from Union Engineering Pte. Ltd. This strategic move is designed to diversify Eneco’s business portfolio, providing a complementary platform in the engineering sector. The acquisition is anticipated to increase the company’s profit attributable to equity holders from S$102,000 to S$325,000 based on pro forma financial results for FY2025.
The transaction is classified as both a “Major Transaction” and an “Interested Person Transaction” under the Singapore Exchange’s listing rules, necessitating shareholder approval. The acquisition aligns with Eneco’s strategy to broaden its business profile and manage diversification risks through phased evaluation and oversight.
Union Steel Holdings Limited, the ultimate holding company of Fastweld, is a substantial shareholder of Eneco Energy, holding approximately 25.02% of its total ordinary share capital. The acquisition is expected to provide additional growth avenues for Eneco, leveraging Fastweld’s expertise in industrial engineering and maintenance works. Further details will be provided in a circular issued by Eneco ahead of the EGM.
