NEWS RELEASE
SALE OF CPG CORPORATION PTE LTD TO DOWNER EDI LTD
Singapore, 24 March 2003 - Temasek Holdings ("Temasek") is pleased to announce that it has signed a Sale and Purchase Agreement with Downer EDI Limited ("Downer EDI") for the sale of CPG Corporation Pte Ltd ("CPG Corp").
2 The total sale consideration is S$131 million. The five-year Master Agreement signed between the Singapore Government and CPG Corp in 1999 will continue through to 31 March 2004. The Master Agreement provides for CPG Corp to undertake project consultancy services for public works projects of project values above S$20 million.
3 Downer EDI, based in Sydney, is a leading engineering, infrastructure and
resource services company with extensive operations throughout Australasia and
the Asia Pacific region. Downer EDI has total assets of A$1.8 billion, more
than 10,000 employees and an annual turnover of around A$2.5 billion. Downer
EDI was selected as the winning bidder from among 6 shortlisted bidders, including
a management buyout bid.
4 CPG Corp's total net asset value as at the last financial year end of 31 March
2002 was S$94 million, while its net fee income for the year was about S$181
million.
5 The combination of Downer EDI and CPG Corp is viewed as highly complementary
and will result in the formation of a unique firm with a comprehensive service
offering and reach across the Asia Pacific region.
6 Mr Jimmy Phoon, Managing Director of Strategic Development (Asia Investments),
Temasek said: "We are pleased with this successful sale. We believe that
Downer is a strategic shareholder, which will be able to add value and enhance
CPG's business and potential as a regional player. On the other hand, CPG's
track record in Singapore and the region provides the opportunity for Downer
to reach out to the growing opportunities in Asia. This is an excellent win-win
partnership for both Downer and CPG given their successes in providing integrated
services to diverse industries in the Asia Pacific region. Temasek is pleased
that both companies will benefit from the transaction, with Downer strengthening
its presence in Singapore and CPG now able to complete its transformation into
a fully fledged private sector company and also leverage off Downer's extensive
Asia-Pacific network."
7 Managing Director of Downer EDI, Mr Stephen Gillies, said: "There are
natural synergies between the companies with a common emphasis on providing
total infrastructure solutions to clients and the acquisition will be mutually
beneficial. The addition of CPG will reposition Downer in Asia as a service
company and significantly expand our existing, well-established operating base
in Singapore. CPG is a longstanding and reputable provider of high value-adding
engineering services and will enable Downer to provide turnkey end-to-end solutions
to its clients."
8 Mr Khor Poh Hwa, President & CEO of CPG Corp said: "With the combined
expertise and market reach of CPG and Downer, we look forward to increased opportunities
for CPG in the Asia Pacific region, including entry into new markets."
9 The bid for CPG Corp attracted many interested parties, including both local
and international companies. The sale of CPG Corp, Singapore's leading integrated
architecture, engineering consultancy and facilities management company, is
part of Temasek's plan to divest businesses which no longer require participation
by Temasek. The transaction is expected to close on 1 April 2003.
10 JP Morgan acted as financial advisor to Temasek on this divestment.
For media enquiries, please
contact:
Rachel Lin (Ms)
Associate Director, Corporate Communications
Temasek Holdings (Pte) Ltd
DID: 6828 6766
Fax: 6828 6266
Mobile: 96661855
Email: rachellin@temasek.com.sg
ABOUT CPG CORPORATION
CPG Corporation (formerly known as PWD Corporation) is one of Asia's leading
development professionals. Through its subsidiaries, it provides the complete
spectrum of building and infrastructure development and management services.
Its customised and innovative solutions extend to master planning and design,
architectural and engineering design and consultancy, project management, design
and build services, facilities management, diagnostic and quality assurance
testing services and IT services for the building and construction industry.
The CPG Corp team comprises approximately 2,000 staff in Singapore, China, India and the Philippines. Founded on a strong tradition of integrity, professionalism, creativity, quality and service excellence, CPG Corp values client partnerships. Another core attribute for CPG Corp's success is its global outlook. It has won numerous awards and accolades both in Singapore and internationally. For more information, visit www.cpgcorp.com.sg
ABOUT DOWNER EDI LIMITED
Downer EDI, based in Sydney, is Australia's second largest listed engineering,
infrastructure and resource services company with assets of A$1.8 billion, more
than 10,000 employees and an annual turnover of around A$2.5 billion. Downer
EDI is an Australian top-150 company which provides comprehensive engineering
and infrastructure management services to the public and private rail, road,
power, telecommunications, mining and resources sectors in Australia, New Zealand
and Asia. Works Infrastructure services in Australia and New Zealand focus on
the maintenance and repair of public and private infrastructure assets, including,
roads, rail track, utility services, water supply, wastewater treatment, parks
and reserves. For more information, visit www.downeredi.com