PEC Ltd. to be Acquired in a US$160 Million Buyout
In a significant development within the construction and engineering sector, PEC Ltd., a prominent player in the mechanical engineering and contracting industry, has been acquired in a US$160 million buyout by Alliance Energy Services Pte Ltd. This transaction, which was approved by PEC Ltd.’s shareholders at an Extraordinary General Meeting in Singapore, marks a pivotal moment for the company, which has been a cornerstone in the oil and gas, petrochemical, pharmaceutical, and oil and chemical terminal industries since its founding in 1982.
The acquisition, valued at US$160 million, was facilitated through a Scheme of Arrangement and received the necessary sanction from the High Court of Singapore. This move effectively transitions PEC Ltd. from a publicly traded entity on the Singapore Exchange to a privately held company under the umbrella of Alliance Energy Services Pte Ltd. The strategic buyout underscores the growing consolidation trend within the industrials sector, particularly in areas requiring specialized engineering and construction services.
PEC Ltd. has been recognized for its comprehensive suite of services, including engineering, procurement, and construction (EPC) services, engineering design and maintenance, project management and consultancy, plant maintenance, and a wide array of mechanical, piping, structural, and electrical services. Additionally, the company has been involved in leasing heavy machinery and construction equipment, offering civil, mechanical, and electrical engineering project services, and providing engineering technology, economic environmental, and health consultancy services.
The buyout by Alliance Energy Services Pte Ltd. is anticipated to bolster PEC Ltd.’s capabilities and market reach, particularly in its operations across Singapore, India, Malaysia, China, Indonesia, Myanmar, Thailand, Vietnam, and the United Arab Emirates. This acquisition not only signifies a strategic expansion for Alliance Energy Services Pte Ltd. but also promises enhanced service delivery and innovation in the sectors PEC Ltd. serves.
Prior to the acquisition, PEC Ltd. experienced a trading halt, as indicated by multiple requests for lifting the trading halt and a suspension notice on the Frankfurt Stock Exchange (XFRA QPE). These actions were part of the procedural steps leading up to the acquisition, ensuring compliance with regulatory requirements and maintaining market integrity.
With a market capitalization of 210.96 million SGD and a price-earnings ratio of 15.56, PEC Ltd. has demonstrated robust financial health and operational excellence. The acquisition is expected to leverage these strengths, driving growth and value creation for Alliance Energy Services Pte Ltd. and its stakeholders.
As the industry continues to evolve, this acquisition highlights the importance of strategic partnerships and consolidations in enhancing competitive advantage and fostering innovation in the construction and engineering sectors. The future for PEC Ltd., under the stewardship of Alliance Energy Services Pte Ltd., looks promising, with potential for expanded service offerings and deeper market penetration in its core industries.