Sembcorp Industries Plans India Unit IPO, Asset Sale
By Gaurav Raghuvanshi
SINGAPORE--Singapore conglomerate Sembcorp Industries Ltd. (U96.SG) Friday announced the initial public offering of its Indian power unit and said it plans to raise 500 million Singapore dollars (US$379 million) more selling some other assets.
The IPO of Sembcorp Energy India Ltd. will help grow its Indian business, Sembcorp said, adding it has filed a prospectus on BSE Ltd. and the National Stock Exchange of India. Sembcorp didn't say how much the IPO may raise.
In addition, the company also plans to sell some "peripheral" utilities assets over the next two years to raise S$500 million, Sembcorp said in a statement to Singapore Exchange following a 'strategic review' of its businesses.
The company said it will continue to support its unit Sembcorp Marine Ltd. (S51.SG). The rigbuilder's shares had gained over 35% before closing 11.4% lower on Thursday as the markets speculated the review could result in Sembcorp Marine being sold or taken private.
"We are confident that Sembcorp Marine...is well-positioned to benefit from the industry's recovery with its active investments in new capabilities and technological innovations," said Neil McGregor, Sembcorp group president and chief executive.
Sembcorp Industries also reported that its net profit fell 85% from a year earlier to S$22.8 million in the fourth quarter of last year, while revenue rose 4.8% to S$2.12 billion. Full-year profit fell 42% to S$230.8 million, dragged by weaker contributions from Sembcorp Marine amid a downturn in the offshore and marine industry.
Write to Gaurav Raghuvanshi at firstname.lastname@example.org
(END) Dow Jones Newswires
February 22, 2018 19:36 ET (00:36 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.