Date of Report: October 3, 2024
Broker: Maybank Research Pte Ltd
Subsidiary Settlement
Sembcorp’s wholly-owned subsidiary, Sembcorp Cogen, has accepted an offer to settle a claim of USD50.9 million (SGD65.5 million) from Lim Oon Kuin and two other family members. The settlement agreement has been reached, but it is still subject to formal court approval.
Settlement Details
Sembcorp Cogen is expected to lodge a proof of debt with the bankruptcy trustees of the Lims at the appropriate time. The report notes that while the settlement is a positive development, the uncertainty surrounding the recoverability of the amounts from the Lims means that this resolution is not expected to significantly impact Sembcorp’s earnings per share (EPS) for the financial year 2024.
Financial Impact on Sembcorp
Despite the successful settlement, the report highlights that the financial impact on Sembcorp’s EPS for FY24 is expected to be minimal due to the uncertainty of recoverability of the settlement amount from the Lims.
This information is extracted from the October 3, 2024, Maybank Research Pte Ltd report.
