- Sembcorp Industries (SGX:U96) is selling 100% of its shares in Sembcorp Energy India Limited (SEIL) that owns two coal-fired plant totaled 2,640 MW in India, to Tanweer Infrastructure Pte. Ltd. (the “Tanweer”).
- - Read this at SGinvestors.io -
- The consideration for the SEIL sale is INR117,338m (approximately S$2,059m), subject to certain adjustments. The base purchase price is 1.0x of SEIL’s book value as of 30 June 2022. Sembcorp is expected to register a small disposal gain of S$11m upon completion.
- While power companies in India might have re-rated to above book valuation, transactions of thermal power plants remain at steep discounts to book. Hence, Sembcorp’s proposed divestment of SEIL at book is deemed commendable.
- - Read this at SGinvestors.io -
- DPN income (post tax) for Sembcorp is expected to be ~S$158m for 2022 on proforma basis, thus mitigating the loss of income from the two power plants, which were projected to be S$140-180m p.a. on a normalised basis.
Stable financial metrics post transaction
- Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
Pei Hwa HO DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-09-06
Read also DBS's most recent report:
2026-03-06 Sembcorp - Beneficiary Of Higher Gas Price & Volatility.
Previous report by DBS:
2025-08-11 Sembcorp Industries - Short-term Setback, Long-term Engines Intact.
Price targets by other brokers at Sembcorp Target Prices.
Listing of research reports at Sembcorp Analyst Reports.
Relevant links:
Sembcorp Share Price History,
Sembcorp Announcements,
Sembcorp Dividend Payout Dates & Corporate Actions,
Sembcorp News
