Singapore-based infrastructure group Sembcorp Industries' wholly owned subsidiary Sembcorp Environment is selling its India unit Sembcorp Enviro to Ramky International (Singapore) for S$7.25 million ($5.84 million or around Rs 36 crore), as per a stock market disclosure. The divestment is expected to complete by December 30, 2013.
Sembcorp Enviro (India) is a special purpose vehicle that owns 51 per cent stake in SembRamky Environmental Management, a medical waste collection and treatment player in India.
Post divestment, Sembcorp Enviro (India) and SembRamky Environmental Management will not be the subsidiary of Sembcorp Industries.
The divestment is in line with the group’s efforts to streamline its businesses and sharpen its strategy for the India market. The consideration for the sale was arrived at taking into account, amongst others, the net asset value of SembRamky Environmental Management’s business.
"This deal is not expected to have a material impact on the earnings per share and net asset value per share of the group for the financial year ending December 31, 2013," the company said in the filing.
With facilities of 5,900 megawatts of gross power capacity and over 7 million cubic metres of water per day in operation and under development, Sembcorp provides energy and water solutions to both industrial and municipal customers.
In 2006, the firm had sold Sembawang Engineers and Constructors Pte Ltd to Punj Lloyd Pte Ltd, an arm of Indian infrastructure firm Punj Lloyd in two tranches for a total of $25.33 million.
Incorporated in 1994, Hyderabad-based Ramky Group is engaged in infrastructure, enviro engineering, estates and farms, life sciences, finance and investments. The firm has over 4,500 employees.
(Edited by Joby Puthuparampil Johnson)