SINGAPORE (June 12): Sembcorp Industries' wholly-owned subsidiary, Sembcorp Development, has disposed of its entire 10.27% stake in Gallant Venture for a consideration of $62 million.
Sembcorp’s interest represents some 548 million ordinary shares.
Upon completion of the transaction, Sembcorp will cease to be a substantial shareholder of Gallant.
Gallant is the integrated master planner for industrial parks and resorts in Batam and Bintan.
The sale consideration took into account the fact that Gallant shares have been thinly traded on the Singapore Exchange.
Sembcorp says the disposal by way of block trades represented a good opportunity for Sembcorp Development to divest a non-core investment, and is in line with the group’s strategy to optimise returns and recycle capital.
The consideration was satisfied wholly in cash and the proceeds redeployed as general working capital for the Sembcorp Group.
As at 4.15pm, shares in Sembcorp Industries and Gallant Venture are trading at $2.37 and 13 cents, respectively.