SINGAPORE - Sembcorp Industries anounced on Monday (Sept 21) that its wholly-owned subsidiary, Sembcorp Environment, has signed an agreement to divest its 40 per cent stake in SembSita Pacific Pte Ltd (SembSita) to 60 per cent joint venture partner, Suez Environnement Asia (Suez), for A$485 million (S$488 million).

SembSita is an investment holding entity for an integrated waste management business in Australia.

The divestment will result in an expected net gain of approximately S$350 million for the group for the financial year ending Dec 31.

Commenting on the divestment, Sembcorp Industries group president and CEO Tang Kin Fei said: "Since we first invested in SembSita in 2000 with Suez, the joint venture has grown significantly and become one of the leading integrated waste management players in Australia. Proceeds from its sale will provide us with additional resources to invest in businesses and markets with high growth potential, in line with our focus on the energy and water sectors."

The divestment is subject to Foreign Investment Board Review approval in Australia, and is expected to be completed by the fourth quarter of 2015.