Sembcorp sells water business in Panama

The divestment resulted in a net gain of about $21m.

Sembcorp Industries, through its wholly owned UK subsidiary Sembcorp Holdings, has sold 100% of its stake in Sembcorp Investments (SIL), which owned 100% of Aguas de Panama S.A. (APSA) to an affiliate of the Seven Seas Water Corporation.

According to an SGX filing on 2 November, the gross consideration for the sale of the water business’ equity shares was approximately $64m (US$47m), and the consideration for assignment of the shareholder’s loan was approximately $2.4m (US$1.8m).

APSA is a municipal water asset serving the Arraiján District in Panama under a 30-year concession that began in 2002. As of 30 October, the net asset value of SIL and APSA was $38m, and the divestment resulted in a net gain of approximately $21m.

Due to the divestment, SIL and APSA are not part of the Sembcorp Group anymore, and Sembcorp has also now fully exited the Panama market. Moreover, no material impact on the earnings per share and net asset value per share of Sembcorp for the current financial year is expected, the company has advised.