Sembcorp jumps 4.9% on talk of potential privatisation, asset sale
Company says it continually reviews its portfolio to optimise shareholder value
[SINGAPORE] Shares of Sembcorp Industries jumped on Tuesday (Mar 18) morning after a Monday report said that the company was conducting a strategic review of its business and potentially considering going private or selling some assets.
At 9 am, the counter jumped to an intraday high of S$6.40 in early trade, up S$0.30 or 4.9 per cent from the previous closing price, as around 750,800 shares changed hands. This marked its steepest intraday gain since Aug 7.
The last time it traded above this level was on Mar 6.
Shares of Sembcorp ended Monday 2.4 per cent or S$0.14 higher at S$6.10.
As at 3.49 pm on Tuesday, the share price had eased back down to S$6.24, still up by 2.3 per cent or S$0.14.
On Monday, a Bloomberg report citing unidentified sources “with knowledge of the matter” stated that the Temasek-backed energy and urban solutions provider was working with a financial adviser on a review of its business. The sources had requested not to be identified as the matter is private, the report said.
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It added that considerations are at an early stage and Sembcorp may decide not to pursue any deal.
Responding to the claims through a Tuesday bourse filing, Sembcorp said it “continually reviews its portfolio to optimise shareholder value”.
In the course of such reviews, the company “may from time to time engage with external advisers to consider available options”, it said.
Such options could include investments, divestment, restructuring, listing and capital management, said a spokesperson.
The company added that it would make necessary announcements when there are material developments, and warned shareholders to exercise caution in dealing with its shares.
Past restructuring efforts include Sembcorp’s 2020 demerger from its former loss-making marine unit, Sembcorp Marine, a move designed to allow both companies to focus on their respective businesses.
Sembcorp conducts business operations related to gas, renewables, and urban solutions such as waste and water management.
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