Sembcorp Industries subsidiary divests medical waste division for S$20m

A UNIT of mainboard-listed Sembcorp Industries (Sembcorp) has signed an agreement to divest its Singapore medical waste division for S$20 million to TEE Medical Services, part of construction engineering company TEE International.

The sale will result in an expected net gain of around S$15 million, Sembcorp said.

Sembcorp Environment's medical waste division specialises in the treatment and disposal of biohazardous and pharmaceutical waste, and was sold to a 50:50 joint venture between unit TEE Infrastructure and Asia Enviro Services.

The total proceeds of S$20 million was derived by taking into account the earnings and book value of the business and the relevant transaction multiples, Sembcorp said in an exchange filing.

Announcing the divestment, Sembcorp's group president and chief executive Neil McGregor said that it was in line with the group's strategic efforts to improve performance and strengthen its balance sheet.

"This includes sharpening our attention to the divestment of peripheral utilities assets to recycle capital and unlock value," he said.

Sembcorp's shares ended Thursday at S$3.07 apiece, up 0.66 per cent or S$0.02.