Sembcorp Industries’ wholly-owned subsidiary, Sembcorp Environment, will divest its 40% stake in Australian waste management company SembSita Pacific Pte to 60% joint venture partner, Suez Environnement Asia (Suez), for a sale consideration of A$485 million (US$342.7).
This divestment will result in an expected net gain of approximately S$350 million (US$246.6m) for the Sembcorp group for the financial year ending December 31, 2015.
Tang Kin Fei, group president & CEO, said: “Proceeds from its sale will provide us with additional resources to invest in businesses and markets with high growth potential, in line with our focus on the energy and water sectors.”
The divestment is subject to Foreign Investment Board Review approval in Australia, and is expected to be completed by the fourth quarter of 2015.
Developed by Suez and Sembcorp since 2000, SemSita Pacific was grown to serve 3.7 million people, as well as 56,000 commercial and industrial clients.
Jean-Louis Chaussade, CEO of Suez said: “This transaction will allow Suez to integrate its whole portfolio of activities in Australia, enabling an acceleration of growth and business development momentum in a very promising market. This will also lead to the extraction of both operational and financial synergies…Following this acquisition, the financial flexibility of the Group remains strong and keeps Suez ready to seize new development opportunities.”
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