Singapore-based Sembcorp Industries said on Friday (Nov 8) it will sell its unit Sembcorp Environment to a unit of Indonesian energy company TBS Energi Utama for S$405 million (US$306.6 million).
The deal comes just over a year after the Indonesia-listed firm acquired Asia Medical Enviro Services from Dymon Asia Private Equity in August 2023.
Asia Medical Enviro Services specialises in biohazardous and medical waste treatment services in Singapore.
Sembcorp said in a statement that TBS Energi Utama will retain management and staff of the waste management company following the completion of the transaction to ensure continuity.
Sembcorp Environment had informed the Built Environment and Urban Trades Employees’ Union of the proposed sale, said Melvin Yong, Assistant Secretary-General of the National Trades Union Congress (NTUC) in a Facebook post on Saturday.
“The union is working closely with the management to engage the affected workers on this change and assure them that they will be retained in their current jobs,” he added.
The deal aligns with the firm’s 2024-2028 strategic plan to accelerate its renewables growth and drive energy transition as announced in November 2023, and proceeds from the sale will be channelled towards the same, Sembcorp said in its statement.
The proposed transaction is expected to be completed by the first half of 2025, subject to regulatory approvals and approval from TBS shareholders under the prevailing Indonesian Stock Exchange rules.
