Sembcorp Industries divests stake in China-based water facility operator

SEMBCORP Industries' wholly-owned subsidiary, China Water Company (Yancheng), has inked a conditional sale and purchase agreement to divest its entire 49 per cent stake in Yancheng China Water Co to Yancheng City Municipal Utilities Investment Company for 260 million yuan (S$55 million).

"A net gain of approximately S$35 million is expected to be recognised upon completion of the transaction," Sembcorp Industries said in a release to the Singapore Exchange on Friday. The carrying value of the asset is 100 million yuan.

Yancheng China Water operates a municipal water facility in Jiangsu, China.