SINGAPORE – Mainboard-listed engineering group Tee International on Monday (April 15) said it plans to spin off its infrastructure arm and to list it on the Singapore Exchange’s Catalist board.
Tee International intends to maintain a controlling interest in the business after the proposed spin-off and listing.
Its infrastructure business comprises a 50.1 per cent stake in Singapore waste management firm G3 Environmental Private Limited, a 49 per cent stake in Thailand-based wastewater treatment company Global Environmental Technology Co Ltd, and a 21.05 per cent stake in PowerSource Philippines Distributed Power Holdings, which owns a greenfield thermal hybrid power plant in the Philippines.
The spun-off group will be able to independently raise fresh funds from the capital market to finance its own business expansion, while allowing Tee International to redeploy its financial and other sources to grow its other businesses, the company said in a filing.
Tee International has engaged PrimePartners Corporate Finance as the issue manager and sponsor, and Rajah & Tann Singapore LLP as the Singapore counsel.
In February, Tee International also announced plans to sell a 28 per cent stake in its subsidiary, Tee Land, and entered into a term sheet with Top Capital Securities for the proposed transaction.
Tee International shares were trading at $0.113 as at 1.56pm on Monday, up 0.2 cent from its previous close at $0.111.