Singapore’s TEE International to spin off, list infrastructure assets on Catalist

Photo: Bloomberg

Singapore Exchange (SGX) Mainboard-listed engineering group Tee International Limited has proposed to spin off its infrastructure business into a separate entity which will subsequently be listed on the Catalist Board, it said in its filing on Monday.

Following the deal, TEE International intends to maintain a controlling interest in the spin-off group.

As part of the transaction, TEE International will spin off its 50.1 per cent stake in waste management solutions firm G3 Environmental Pvt Ltd, 21.05 per cent stake in PowerSource Philippines Distributed Power Holdings Inc, and its 49 per cent stake in Thai waste water company Global Environmental Technology Co Ltd. The Philippine entity owns a 25 MW greenfield thermal hybrid power plant in the country.

The company believes that the spin-off move will unlock value for the company. Also, the spin-off entity will be able to independently raise new funds in the capital market to fund its business expansion, it said.

The proposed spin-off transaction details are still in the preliminary stages and are subject to various approvals.

TEE International has appointed PrimePartners Corporate Finance Pte Ltd. as the issue manager, and sponsor. Rajah & Tan Singapore LLP will act as the Singapore counsel in relation to the proposed listing.

TEE International Limited’ stock price closed down by S$0.001 to close Monday’s (April 15, 2019) trading session at S$0.11 per share. The trading volume was relatively active with 7.0 million shares traded, above the three-month average trading volume of 6.43 million shares, according to data provided by Yahoo! Finance.