Listed Companies' Announcement
FEDERAL INTERNATIONAL (2000) LTD
PRESS RELEASE - FEDERAL INTERNATIONAL INKS JOINT VENTURE AGREEMENT WITH FOUR OTHER OIL AND GAS PLAYERS TO ESTABLISH SINGA
--SINGA tasked to tap opportunities in oil-rich regions of Sakhalin and the Middle East
Singapore, December 8, 2003 – Federal International (2000) Ltd ("Federal" or "the Group"), today announced that pursuant to the previous announcement on 21 October 2003, it has signed a joint venture agreement with four other players in the oil and gas industry -- Rotary Engineering Limited ("Rotary"), Hiap Seng Engineering Limited ("Hiap Seng"), Tiong Woon Corporation Holding Ltd ("Tiong Woon"), and Plant Engineering Construction Pte Ltd ("PEC") -- to form "Singa Consolidated Engineers & Constructors Pte Ltd" ("SINGA").
This joint venture agreement is a follow-up to the Memorandum of Understanding signed earlier in October 2003 by the five companies which are joining forces to pursue opportunities in the oil-rich regions of Sakhalin (Russia) and the Middle East. SINGA's key objective will be to provide construction turnkey services to the petroleum, petrochemical, specialty chemical, power plant, oil and gas, water treatment and waste treatment industries.
SINGA has an initial authorized share capital of S$100 million, which is divided into 100 million shares, and an initial paid-up share capital of S$1 million divided into 1 million shares. Federal, Tiong Woon and PEC will each hold 12.5% stake in SINGA, while Rotary and Hiap Seng will each hold a 31.25% stake.
Mr K.K. Koh, Federal's Executive Chairman and CEO, will be one of the directors. The other directors are Tan Ah Lam, Ang Kah Hong, Ko Poh Thim Edna and Chia Kim Piow, who has also been appointed as the Chairman.
Commented Mr K. K. Koh, "We are pleased to push ahead with this consortium as quick decision and speedy action are vital in this competitive oil and gas environment. We are all set to work together to harness the business opportunities available in Sakhalin and the Middle East. "
The above transaction is not expected to have any material effect on the net tangible assets or earnings per share of Federal for the current financial year.
None of the Directors or controlling shareholders of the Company has any interest in the above transaction.
Federal International (2000) Ltd
Listed on the Mainboard of the Singapore Exchange, Federal International (2000) Ltd ("Federal" or "the Group") is a value-added distributor and provider of turnkey EPC (engineering, procurement & construction) solutions for the energy & infrastructure industries. Currently, the group is principally involved in the distribution of flowline control products (e.g. valves, structural steel, steel flanges/ connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries.
Federal has incorporated HP & T Products, Inc. (a Houston-based company) and acquired strategic stakes in KVC Co., Ltd (Japan) and KVC (UK) Ltd, companies which are involved in upstream activities such as research & development and, manufacturing of valves and valve-related equipment. By moving upstream into the design and manufacture of specialised valves and related products under the brands of HPTTM and KVCTM, Federal aims to be an integrated service provider and procurement specialist in the energy and infrastructure industries offering a complete one-stop service package.
Federal, which was established in 1974, has an extensive sales and marketing network strategically located in ASEAN, Far East and the Middle East. The Group's offices are in Indonesia, Brunei Darussalam, Thailand, PRC, Korea, Japan, UK and the USA.
Federal's local and international clientele includes oil majors, drilling contractors, shipyards and refineries.
Submitted by Chng Geok, Company Secretary on 08/12/2003 to the SGX