ST Engg

ST Engg: to acquire 100% stake in Volant Aerospace for US$13.1m, subject to post closing adjustments. The acquisition is in line with STE’s strategic initiative to develop the cabin interior engineering, manufacturing and repair capabilities for its aerospace sector. An industry-leading provider of commercial aircraft interior reconfiguration and modification services, Volant will strengthen the aerospace sector’s cabin refurbishment business. The acquisition will not have any material impact on the consolidated NTA and EPS of STE for the current FY, but nevertheless highlights the group’s push towards growth in the MRO segment. The stock continues to charge towards its all time highs. The blue chip counter trades at 20.6x P/E, offers 4% yield.