SINGAPORE (Aug 23): Sembcorp Marine is acquiring the remaining 15% stake in PPL Shipyard for US$115.1 million (S$209.5 million) in cash.

PPL is in the business of designing, constructing, repairing and improving of oil rigs, ships and other ocean-going vessels.

Sembcorp Marine says the investment in PPL has helped propel the company to be a global player in the design and construction of jackup and semi-submersible rigs.

Since 2001 until 2015, PPL has made cumulative profits of over S$1.6 billion. Cumulative cash dividends for the same period received by the company from PPL have also amounted to S$540 million.

Following the acquisition, PPL will become a wholly-owned subsidiary of the Sembcorp Marine. The company will also have full control of PPL.

“This will enable the company to optimally manage the businesses, finance and resources of PPL, and fully align the latter’s corporate strategies to the Company to generate sustainable returns,” says Sembcorp Marine in its filing.

Sembcorp Marine signed the a sale and purchase agreement with PPL Holdings and E-Interface Holdings on Tuesday.

Shares of Sembcorp Marine closed 0.4% lower at S$1.32.