The proposed transaction aligns with Sembcorp's strategic plan and will sharpen its focus on growth in the energy sector to ensure strategic fit and maximise shareholder value, the company says in a filing.
TBS, through its subsidiaries, manages a waste management portfolio in Singapore and Indonesia. In Singapore, TBS owns and operates Asia Medical Enviro Services, which specialises in biohazardous and medical waste treatment services.
With the proposed transaction, SembEnviro will transition to ownership under TBS, a strategic buyer committed to investing in and supporting the future growth and performance of SembEnviro group.
To ensure continuity and best practices of the services provided, TBS has agreed to retain management and staff of SembEnviro group following the completion of the proposed transaction. Sembcorp will also provide transitional services to support a smooth handover and ensure continued provision of integrated waste management services by TBS.
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The proposed transaction is expected to be completed by the first half of 2025.
Shares in Sembcorp closed at an unchanged $5.01 on Nov 8.
