The new owner is a joint venture between TEE Infrastructure and Asia Enviro Services.
Sembcorp Industries' (Sembcorp) subsidiary Sembcorp Environment sold the assets and businesses of its medical waste division to TEE Medical Services for $20m.
According to an announcement, Sembcorp’s medical waste division specialises in the treatment and disposal of biohazardous and pharmaceutical waste and its new owner TEE Medical Services is a 50-50 joint venture between TEE Infrastructure and Asia Enviro Services.
Sembcorp group president and CEO Neil McGregor commented, “This divestment is in line with our strategic efforts to improve the Group’s performance and strengthen our balance sheet. This includes sharpening our attention to the divestment of peripheral utilities assets to recycle capital and unlock value.”
The sale is expected to be completed by mid-2018, subject to the novation of key customer contracts as well approvals on permits and licences to be issued by relevant government agencies.
Sembcorp was hit by the poor performance of its marine segment as its profits for Q1 plunged 34.1% from $116.3m last year to $76.65m. Its utilities segment was the biggest contributor to profits, however, its improved performance was not enough to offset the weak performance of the other two segments.
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