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ST Engg makes Successful Bid for US Shipyard (25 Jul 2002)

Defence conglomerate Singapore Technologies Engineering said yesterday it put in a successful bid of US$66 million for Halter Marine, the troubled shipbuilding arm of US-based Friede Goldman Halter.

Analysts said the move was in line with the group's stated aim of making overseas acquisitions.

The group, which counts on the Singapore military for about half of its revenues, revealed last month that its non-binding bid for the maintenance arm of failed carrier Swissair had expired but it was open to reconsidering the opportunity later. On the Halter Marine deal, ST Engineering said the proposed acquisition would include seven shipbuilding facilities in Louisiana and on the Mississippi Gulf Coast.

The takeover is subject to the approval of the Bankruptcy Court in Mississippi and other regulatory approvals, which are expected by the end of August, it said.

ST Engineering said Halter Marine, which makes naval and commercial vessels, would provide a good entry point for its unit ST Marine to enter the US shipbuilding market.