Sembcorp exploring sale of waste management unit; early talks started with selected parties
SEMBCORP Industries confirmed that it was exploring a potential sale of SembWaste, its waste management unit, as part of its “ongoing strategic initiatives to maximise shareholder value”.
It has appointed HSBC as its financial adviser for the potential divestment of its waste management business and the energy from its waste plant. Preliminary discussions with selected parties have commenced, the company added in a bourse filing on Monday (Jun 5).
This came after the company had said on May 10 that there was no definitive deal to sell Sembwaste, in response to a Reuters report that named KKR, Macquarie Asset Management and I Squared Capital as potential bidders for SembWaste.
The company’s shares hit an eight-year high of S$4.73 on May 10 following the announcement.
Citing sources with knowledge of the matter, Reuters had reported then that HSBC had been hired to run the sale of the unit and that the first round of non-binding bids were due by early June.
“Sembcorp wishes to emphasise that the discussions are still preliminary, no definitive transaction has been entered into by Sembcorp in respect of such potential divestment with any party, and there is no certainty that any transaction will materialise,” the company said.
Its shares were up S$0.15 or 2.9 per cent to S$5.34 as at 9.30 AM on Monday morning after the announcement.
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