This comes after the Republic raised its low-carbon electricity import target to 6 GW by 2035, up from an initial target of 4 GW set in 2021

 

[SINGAPORE] The subsidiaries of Sembcorp Industries : U96 -0.81% and state-owned utilities company Sarawak Energy have entered an agreement with Prysmian for a hydropower project that could supply Singapore with 1 gigawatt (GW) of green electricity from the Malaysian state, Sembcorp said in a bourse filing on Wednesday (Mar 19).

 

The preferred supplier agreement is between Sembcorp Utilities, Sarawak Energy Services and Prysmian, an Italian subsea cable maker that produces high-voltage submarine and underground cable systems.

 

It also involves technical partner SP PowerInterconnect, a subsidiary of Singapore&rsquo s state-owned utilities company SP Group that specialises in the development and operation of cross-border electricity interconnectors.

 

Sembcorp said that the parties will work on optimising the design, installation methodology and protection requirements for a subsea interconnector cable.

 

The potential import of an estimated 1 GW of green electricity from Sarawak to Singapore is subject to regulatory approvals.

 

Last September, Singapore raised its low-carbon electricity import target to 6 GW by 2035, up from an initial target of 4 GW set in 2021.

Company says it continually reviews its portfolio to optimise shareholder value

 

[SINGAPORE] Shares of Sembcorp Industries : U96 +1.8% 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.

 

At 9.33 am, the share price eased back down to S$6.34, still up by S$0.24 or 3.9 per cent, with 1.5 million shares switching hands. 

 

On Monday, a Bloomberg report citing unidentified sources &ldquo with knowledge of the matter&rdquo 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. 

 

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 &ldquo continually reviews its portfolio to optimise shareholder value&rdquo .

 

In the course of such reviews, the company &ldquo may from time to time engage with external advisers to consider available options&rdquo , 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.

 

Sembcorp Industries (Sembcorp) has completed the sale of the entire shareholding in its subsidiary Sembcorp Environment (SembEnviro) to SBT Investment 2, a wholly-owned subsidiary of TBS Energi Utama (TBS). 

 

This follows the Nov 8, 2024 news when Sembcorp first announced its intention to sell 100% of its shares in SembEnviro for a total consideration of $405 million.

 

Then, it represented a 43% premium over the book value and net asset value of SembEnviro and its subsidiaries (SembEnviro group) as at June 30, 2024, after taking into account the estimated pre-completion dividend to be distributed from SembEnviro group.

 

TBS manages a waste management portfolio in Singapore and Indonesia, and is listed on the Indonesian Stock Exchange. In Singapore, it owns and operates Asia Medical Enviro Services which specialises in biohazardous and medical waste treatment services. 

 

TBS says that it is working to establish a regionally integrated waste management platform with presence in Indonesia and Singapore across medical, industrial and domestic waste management, fostering sustainable waste solutions for both cities and industries.

 

Sembcorp says that it will provide up to 18 months of support services to SembEnviro and its subsidiaries and will also permit limited use of the SembEnviro name and its trademarks during the transitional period.