SINGAPORE: Sembcorp Industries said on Friday (Feb 23) it expects to raise about S$500 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, 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 per cent from the same period a year ago.
Sembcorp Marine turned in poorer-than-expected results earlier this week, sending its stock down 11 per cent on Thursday. Still, its shares have risen more than 26 per cent this year.
AdvertisementAdvertisementSembcorp 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.
Mr 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.
Let's block ads! (Why?)
More...