NCS ACQUIRES SCS. Becomes Singapore IT FORCE

SingTel will strengthen its foothold in Singapore's IT services market with a controlling stake in Singapore Computer Systems (SCS), but it remains to be seen if SCS can lend weight to the telco's regional expansion plans, according to analysts.

In a statement issued Monday, SingTel announced that Computer Systems Holdings (CSH) has acquired a 60-percent stake in SCS from Green Dot Capital for about S$140 million (US$99.3 million), or S$1.50 (US$1.06) per share. CSH is a subsidiary of NCS, which is owned by SingTel.
Lim Eng, CEO of NCS said in the statement: "This [transaction] accelerates the overseas expansion plans of NCS by providing operational scale and an enlarged regional footprint. The IT services market is a high growth area and the potential for growth is enormous."

With the transaction, CSH is also making a "mandatory general offer" for the remaining shares of SCS at S$1.50 (US$1.06) per share. The offer documentation is expected to go out to shareholders between 14 days and by 21 days from