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PHOTO FILE: Visitors watch the displays of the Singapore Technology (ST) engineering booth at the opening day of the Singapore Airshow at the Changi Exhibition Center on February 16, 2016. REUTERS / Edgar Su
(Reuters) – Singapore Technologies Engineering will purchase Belgian-based satellite equipment maker Newtec Group NV for € 250 million ($ 281.23 million).
UK-based Singapore Technologies Engineering (Europe) to make cash offer for Newtec, strengthening its presence in the growing satellite communications sector, according to a ST Engineering press release Wednesday.
The combined revenue and cost synergies of the new combined venture are expected to generate value of about S $ 200 million ($ 147.55 million), the company said.
The transaction is expected to close in the second half of the year and is subject to regulatory approval by some countries.
Once completed, it will also increase ST Engineering's revenue from the second year.
Newtec was not immediately available to comment on the transaction.
(1 USD = 0.8890 euros)
($ 1 = $ 1.3555 Singapore dollar)
Report by Nikhil Kurian Nainan in Bengaluru; Edited by Rashmi Aich
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