Friday, July 11th, 2025

Sembcorp Industries to Boost Earnings with Strategic Acquisition of Senoko Energy Stake

Date: 18 September 2024
Broker: Maybank Research Pte Ltd


Strategic Acquisition of Senoko Energy Stake

Sembcorp Industries (SCI) and its wholly-owned subsidiary, Sembcorp Utilities, have entered into a sale and purchase agreement with Engie Global Developments (Engie). Under this agreement, SCI will acquire a 30% interest in Senoko Energy from Engie, a major supplier of electricity in Singapore. This acquisition will be funded through SCI’s internal cash resources and/or external borrowings.

Significance of the Acquisition

Senoko Energy plays a crucial role in Singapore’s electricity supply. This acquisition is seen as complementary to SCI’s existing portfolio of energy assets. By adding Senoko Energy to its holdings, SCI will enhance its capability to support Singapore’s energy transition. This strategic move aligns with Singapore’s broader energy objectives and boosts SCI’s position within the energy sector.

Regulatory and Shareholder Approvals

The deal is subject to several conditions. It requires regulatory approval from the Energy Market Authority of Singapore. Additionally, it depends on the exercise or waiver of pre-emption rights from the other shareholders of Senoko Energy. The transaction is expected to be completed by the fourth quarter of 2024.

Earnings Impact

Upon completion, the acquisition is anticipated to be accretive to SCI’s earnings. This means that SCI’s overall financial performance will improve as a result of this transaction, further solidifying its strong position within the energy sector.

Alibaba’s Strategic Partnerships and Valuation Recovery Signal New Growth Chapter

Date of Report: October 28, 2024Broker: UOB Kay Hian Private Limited Market Sentiment and Growth Outlook for Alibaba Investor sentiment around Alibaba is increasingly positive, driven by improving regulatory conditions and optimism in China’s...

New World Development Co Ltd Poised for Growth with Strong Technical Buy Momentum

Date of ReportOctober 3, 2024 Broker NameCGS International Securities Company OverviewNew World Development Co Ltd is a prominent property development and investment company. It is heavily involved in a range of real estate activities,...

Thai Beverage (THBEV) FY24 Results: Stable Performance and Positive Outlook for FY25

Thai Beverage’s 2024 Performance and Future Outlook Thai Beverage’s 2024 Performance and Future Outlook Report by UOB Kay Hian, dated 22 November 2024 Introduction In the latest comprehensive report by UOB Kay Hian, Thai...