Sembcorp Industries has completed the divestment of 100% of its interests in the water business in Chile to the Spanish construction and engineering services, SACYR S.A. group of companies on July 30.
The divestment, which was announced on Feb 6, says the total consideration for the divestment was at CLP27.8 billion (approximately $53.6 million). The amount was fully settled in cash.
Accordingly, Sembcorp has exited the Chilean market.
Upon the completion of the divestment, Sembcorp Industries has registered a currency translation loss of some $32 million, which is recognised under profit and loss in the foreign currency translation reserve.
A hedging gain of about $5 million reduces the net charge to $27 million, which has resulted in a reduction of 1.51 cents in the company’s earnings per share (EPS).
Sembcorp Industries says this transaction is not expected to have a material impact on the net asset value per share for the financial year ending December 31.
As at 10.08am, shares in Sembcorp Industries are changing hands 1 cent lower, or 0.6% down, at $1.73.
See also: SembCorp's conscious decoupling with Sembcorp Marine, and Sembcorp Marine to raise $2.1 billion via rights issue; parent Sembcorp Industries to distribute stake in-specie to shareholders
