Chew views the deal “positively” for SCI and as a “strategic entry” into a new source of sustainable growth. He writes that the deal is patmi accretive by 23% on a pro-forma basis excluding amortisation for 12 months earnings ended June, with enterprise value to ebitda experiencing a modest drop to 8.3 times.
After Sembcorp Industries (SCI) announced its acquisition of Alinta energy for A$6.5 ($5.6) billion, PhillipCapital’s Paul Chew still sees upside in Sembcorp Industries’ shares as he sticks with his “buy” call in his research note issued Dec 15.
However, he lowered the TP from August’s $7.90 to $7.10. Valuation is based on nine times of enterprise value to estimated adjusted ebitda for FY2025 and includes the book value of deferred payment note received from selling Sembcorp Energy India Limited in January 2023.
