Sembcorp sells Gallant Venture stake at below-market price

Sembcorp dragon boat team at DBS Marina Regatta on 2 June 2019.Sembcorp dragon boat team at DBS Marina Regatta on 2 June 2019.

Sembcorp Industries said Tuesday its wholly owned subsidiary Sembcorp Development disposed of its entire 10.27 percent stake in Gallant Venture, or 548.04 million shares, for S$62 million in cash.

On Tuesday, Gallant Venture’s share price closed at S$0.13, suggesting a per share price for the stake would have been around S$71.24 million on the market.

“The sale consideration took into account the fact that GV shares have been thinly traded on the Singapore Exchange,” Sembcorp said in a filing to SGX.

“Disposing of Sembcorp Development’s entire holding in GV by way of block trades represented a good opportunity for Sembcorp Development to divest a non-core investment, and is in line with Sembcorp Group’s strategy to optimise returns and recycle capital,” it added.

The proceeds will be redeployed as general working capital, it said.

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