Sembcorp Industries disposed entire equity interest in Gallant Venture for S$62m

SEMBCORP Industries' wholly owned subsidiary Sembcorp Development disposed its entire 10.27 per cent equity interest in Gallant Venture for a consideration of S$62 million.

Following which, Sembcorp Development ceased to be a shareholder of Gallant Venture. The company said that the sale consideration took into account the fact that Gallant Venture shares have been thinly traded on the Singapore Exchange.

It added that the disposal of Sembcorp Development's entire holding in Gallant Venture by way of block trades represented a good opportunity to divest a non-core investment, and is in line with Sembcorp Group's strategy to optimise returns and recycle capital.

The consideration was satisfied wholly in cash and the proceeds redeployed as general working capital for Sembcorp Group.

The transaction above is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, 2019.