Sembcorp Industries joint venture to divest Xinmin water plant

China yuan coins

Sembcorp Industries said on Monday its 90.9 percent owned joint venture Sembcorp Xinmin Water (SXWC) signed a conditional deal to transfer its wholly owned municipal water plant to a local government agency for 98.8 million yuan, or around S$19.9 million.

“The divestment is in line with the group’s capital recycling efforts and portfolio rebalancing strategy,” Sembcorp said in a filing to SGX on Monday after the market close.

The transaction completion is expected by mid-2020, after conditions are met, including approval from the relevant Chinese authorities, the filing said.

The agency is the Housing & Urban-Rural Development Bureau of Xinmin, it said.

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