Sembcorp agrees to acquisition offer

The waste and recycling-related assets of Sembcorp Industries, part of a firm that is partially owned by Singapore’s Temasek sovereign wealthy fund, may soon be acquired by SBT Investment 2 Pte. Ltd., a wholly-owned subsidiary of Indonesia-based PT. TBS Energi Utama Tbk (TBS).

The sale of Sembcorp Environment Pte. Ltd. (SembEnviro) to TBS is aligned with Sembcorp’s strategy to focus on growing its energy business, the company says.

“Proceeds from proposed sale will be channeled towards Sembcorp’s 2024-to-2028 investment plan,” it adds.

Sembcorp says it will pay about $302.5 million for SembEniviro, a 43 percent premium over the book value and net asset value of SembEnviro and its subsidiaries as of midyear 2024.

Singapore-based Sembcorp says proceeds of the sale will be directed toward fostering its growth in the energy sector.

TBS, through its subsidiaries, has a waste management portfolio in Singapore and Indonesia. Beyond the SembEnviro operations, TBS owns and operates a biohazardous and medical waste treatment services firm in Singapore.

According to Sembcorp, TBS is focusing on establishing a regionally integrated waste management company with a presence in Indonesia and Singapore in the medical, industrial and household waste management sectors, “fostering sustainable waste solutions for both cities and industries.”

TBS has agreed to retain personnel from SembEnviro group following the completion of the proposed transaction.

The transaction is expected to be complete by the first half of next year, subject to regulatory approvals and TBS shareholder approval.

In Singapore, SembEnviro has a significant presence in municipal solid waste and recyclables collection and serves more than 5,000 industrial and commercial customers there.