Sembcorp Industries (Sembcorp) says it has completed the divestment of its water business in Panama for a gross consideration of US$47 million ($64 million). The consideration for the assignment of the shareholder’s loan was US$1.8 million.
On Nov 2, Sembcorp’s wholly-owned UK subsidiary Sembcorp Holdings signed and completed a sale and purchase agreement to divest 100% of its stake in Sembcorp Investments (SIL), which in turn owns 100% of Aguas de Panama (APSA) to an affiliate of Seven Seas Water Corporation (SSW).
The consideration was received in cash upon completion.
The net asset value of SIL and APSA was $38 million as at Oct 30, 2020 and the divestment resulted in a net gain of some $21 million.
SSW is a portfolio company owned by investment funds managed by Morgan Stanley Infrastructure Partners.
APSA is a municipal water asset serving the Arraiján District in Panama under a 30-year concession that commenced in 2002.
Sembcorp says the consideration of the sale took into account the remaining tenure of the concession and that the divestment of the asset is “in line” with the group’s capital recycling efforts.
Following the divestment, Sembcorp has exited the Panama market.
Shares in Sembcorp closed 5 cents lower or 3.1% down at $1.58 on Oct 30.
See also: Sembcorp subsidiary issues notice of redemption of $1.5 bil 3.55% guaranteed bonds due 2024
