Link: https://links.sgx.com/1.0.0/corporate-announcements/CUF5HYHIOX2WBELY/9ed1d27f2574c2f0608a36b3e39803836c492657e5f7c22e2bef804fc4f33654

Summary:

• Federal International (2000) Ltd has entered into a share subscription agreement to acquire 244,355 new ordinary shares in SRE Holdings Investment and Development Joint Stock Company (SRE HoldCo) for US$1.05 million.

• The subscription represents an 8.82% stake in SRE HoldCo, which owns 99% of Southern Renewable and Green Energy Company Limited (SRE).

• SRE specializes in steel processing and fabrication for onshore and offshore wind towers in Vietnam, boasting high production capacity (120,000 metric tons/year) and international certifications (ISO, API).

• SRE’s competitive edge lies in its low-cost model, certified quality, and sole status as a heavy steel structure fabricator in Vietnam.

• The investment allows Federal to participate strategically in Vietnam’s growing renewable energy sector.

• The proceeds from the subscription are earmarked solely for machinery and equipment to support SRE’s operational expansion.

• Federal will have the right to appoint a board observer and participate in tenders for project supply through this partnership.

• Key shareholder protections—such as moratorium, pre-emption rights, co-sale rights, and anti-dilution provisions—are included in the shareholder agreement.

• The purchase is fully funded from Federal’s internal resources and has no material impact on group NTA or EPS.

• The transaction is classified as a “discloseable transaction” under SGX rules, with further announcements to follow if material developments arise.