Singapore Technologies Engineering has confirmed that its aerospace subsidiary, ST Engineering Aerospace (ST Engineering), signed an agreement on November 14, 2025, to divest its entire stake in Shanghai Technologies Aerospace Company (STARCO). The deal transfers all equity interests held by the group — amounting to 49% of the company and its corresponding paid-up registered capital — to China Eastern Airlines Corporation (CEA).
Once the transaction is completed, ST Engineering will no longer retain any shareholding in STARCO. CEA, which already owns the remaining 51%, will move to full ownership and take complete control of the joint venture. The sale marks the end of a long-running partnership between the two companies within the Chinese maintenance, repair and overhaul (MRO) market.
CEA has agreed to purchase the 49% stake for a cash consideration of RMB680.5 million, equal to approximately S$124.6 million. The payment will be made across two instalments. The first tranche, valued at RMB506.7 million (around S$92.8 million), will be settled upon the completion of the divestment. The second tranche of RMB173.8 million (around S$31.8 million) is due no later than December 31, 2026, and will be backed by a bank guarantee to ensure certainty of payment.
The joint venture with CEA was established in 2004 for an initial 20-year term. Following the extension of this agreement in 2024, both partners have now agreed to conclude their partnership to focus on their respective growth plans. This decision brings to a close a successful collaboration that has benefited both companies. ST Engineering values the strong working relationship it has enjoyed with CEA and looks forward to continuing to support the airline as a valued customer in the years ahead.
