Sembcorp to divest stake in JV for $29.4m

The transaction will be completed by the end of the year.

Sembcorp Industries, through its wholly-owned subsidiary CSE Holding, has signed a conditional agreement to divest its entire 32% stake in the joint venture company Shenzhen Chiwan Sembawang Engineering (CSE) to Chixiao Enterprise for $29.4m (RMB150m), according to a bourse filing.

The consideration, net of relevant taxes, will be received in cash upon completion of the sale. Upon completion, CSE will cease to be a part of the group.

The transaction is expected to be completed by the end of the year, subject to the satisfaction of certain conditions precedent, including the regulatory approval of the local Administration for Market Regulation.

The divestment of this non-core asset is in line with the group’s capital recycling efforts, the bourse filing stated.

CSE is in the business of fabrication and sale of offshore engineering, onshore industrial and structural engineering steel structure products. It operates under a 30-year business licence which expires in July 2024.

Sembcorp’s carrying value of this investment was $27m as of June 30. A $30m impairment charge on the investment was taken in the group’s financial results for the half year ended June 30.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia