SCI unit divests stake in Chinese wastewater treatment plant operator

Sembcorp Industries’ (SCI) wholly-owned subsidiary, Sembcorp (China) Holding Co, has signed a conditional agreement to divest its 80 per cent stake in Sembcorp Lianyungang Water Co (SLWC) to its local partner for 120 million yuan (SGD $23.7 million).

Sembcorp said in a filing to the Singapore Exchange on Tuesday that the consideration was decided taking into account SLWC’s book value, relevant transaction multiples and the settlement of an outstanding loan. SLWC runs an industrial wastewater treatment facility in the Lianyungang Lingang Chemical Industrial Park in China.

The divestment is in line with Sembcorp’s capital-recycling efforts, and the transaction is expected to be completed by the end of the year, Sembcorp said.

Sembcorp shares ended at S$2.49 on Tuesday before the announcement, up eight Singapore cents or 3.32 per cent.