According to sources familiar with the matter, Sembcorp Industries Ltd. is currently conducting a strategic evaluation of its operations, contemplating various options such as going private or selling off assets. The Singaporean company, supported by state-owned Temasek Holdings Pte, is collaborating with a financial advisor on this assessment, as disclosed by insiders who preferred to remain anonymous due to the confidential nature of the issue.
The stock of Sembcorp experienced a surge of up to 4.9%, marking its most significant intra-day increase since August 7th. The considerations being deliberated are in the preliminary stages, and the final decision may involve not pursuing any transactions, according to the sources.
A spokesperson representing Sembcorp asserted that the company continuously evaluates strategies to boost shareholder value, which can include investments, divestments, restructuring, listings, and capital management. They emphasized that these evaluations might or might not lead to any transaction and assured that all necessary disclosures will be made in compliance with SGX-ST Listing Manual guidelines when a substantial initiative with a high degree of certainty progresses to a significant stage.
Sembcorp's diverse business sectors encompass wind, solar, hydro, and energy storage ventures in Southeast Asia, China, India, the UK, and the Middle East. Additionally, it operates gas and diesel-fired power plants in these regions, provides urban solutions like waste and water management, and offers corporate decarbonization services.
Past restructuring efforts by Sembcorp include the 2020 demerger of Sembcorp Marine due to the impacts of Covid-19, aiming to enhance focus on the energy and urban sectors. Furthermore, the company finalized divestments in Chile, China, and Panama that same year. In 2024, Sembcorp announced the sale of Sembcorp Environment Pte for S$405 million.
With a more than 250% increase in its shares since the end of 2020, Sembcorp Industries currently holds a market value of S$10.7 billion ($8 billion). In the previous year, net income exhibited a growth of around 7% to S$1 billion, notwithstanding a 5.2% decline in sales to S$3.21 billion.
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