Teho International is moving deeper into the property sector. It announced on Thursday (Sep 25) that it had signed a non-binding letter of intent, to buy over ECG Group, a property development company, for S$17 million.
Teho is a holding company mainly specialising in marine, offshore oil and gas. The proposed acquisition will allow Teho to expand its operations in the local and overseas property market. It is part of the company’s diversification plans, as it seeks to grow its business amid the flagging nature marine and shipping industry.
Earlier this year, Teho acquired TIEC Holdings, a property subsidiary of ECG Group. Said Teho CEO Mr Lim See Hoe: “We have seen the marine sector been in bad shape for almost the longest time since 2009 and it has still not recovered. For us, we have done well to weather this for the past number of years and we have worked extremely hard to get over it.”
“However, we could be in bad shape come the next downturn so I think that it is important that we spread our eggs and properties is something that we can take some baby steps in investing in.”
Source : Channel NewsAsia – 25 Sep 2014