Posted on: 01 September 2015 by Mark Howells
Singapore Technologies Engineering (ST Engineering) has terminated the joint venture agreement between ST Aerospace Resources and Wings Capital Partners Holdings, but will continue to offer aircraft leasing as part of its total aviation support as a result of incorporating Keystone Holdings.
The now-terminated joint venture, WingStar, was set up to acquire mid-life to end-of-life aircraft for lease, conversion or part out. The decision to terminate it and commence Members’ Voluntary Winding Up was mutually agreed upon between the two shareholders, as a result of differing views on the strategic focus and operational plans.
However, recognising aircraft leasing as an important extension of its offering, ST Aerospace Resources has incorporated Keystone Holdings, a subsidiary based in Singapore, with a paid up capital of US$10 (approximately S$14).
Keystone Holdings serves as a holding company for aircraft leasing investments, and it plans to incorporate new subsidiaries in various geographies to support its projected portfolio purchase of aircraft which are currently on lease to global airlines.
This development allow ST Engineering’s aerospace arm to tap on opportunities created by global aircraft fleet expansion and renewal, building up a portfolio of mid-life and end-of-life aircraft assets focused on the Airbus A320 and Boeing 737NG families.
The setting up of the companies is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.