Sembcorp Industries to raise $380m from asset sales, plans India energy IPO

The 2,640-megawatt Sembcorp Gayatri Power Complex in Nellore, Andhra Pradesh. Source: Sembcorp Industries Ltd

Singapore’s Sembcorp Industries said on Friday it expects to raise about $380 million from the sale of some utilities assets and plans to list its Indian energy business, as it reported a plunge in quarterly profit.

The industrial conglomerate, which has been conducting a strategic review of its business, said it has begun the process for an initial public offering (IPO) of the Indian unit, Sembcorp Energy India Ltd.

It expected the divestments to provide cash proceeds of up to S$500 million ($380 million), not including the potential proceeds from the proposed India IPO.

Sembcorp has filed a draft preliminary prospectus for the listing on BSE Ltd and the National Stock Exchange of India.

The company, the biggest shareholder in rig-builder Sembcorp Marine, reported a net profit of S$22.8 million for the fourth quarter, a drop of 85 percent from the same period a year ago.

Sembcorp Marine turned in poorer-than-expected results earlier this week, sending its stock down 11 percent on Thursday. Still, its shares have risen more than 26 percent this year.

Sembcorp Industries’ review of its businesses, which began last year, had prompted market talk of a potential privatisation or divestment of Sembcorp Marine, according to analysts.

Neil McGregor, Sembcorp Industries’ CEO, said the company was confident that Sembcorp Marine was well-positioned to benefit from offshore and marine industry’s recovery, said.

“We will continue to support the business through the cycle,” he said.

Reuters

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.