Company Briefs: Metro Holdings

Metro Holdings

Metro Holdings has acquired a 35 per cent stake in a joint venture that is investing in Shanghai Plaza, a mixed-use building in Shanghai worth 2.9 billion yuan (S$611 million).

The joint venture company, Shanghai Yi Zhou Property Management Co, has acquired a 90 per cent stake of the building, with the intention to acquire the remaining 10 per cent by 2020.

This acquisition was undertaken via a sale and purchase agreement with Hangzhou Huan Bei Silk Clothing City Co for a 90 per cent stake in Shanghai Yong Ling Property Development Co, which owns Shanghai Plaza.

Located in the prime Huai Hai Zhong Road in Huang Pu district, Shanghai Plaza has a gross floor area of 40,693 sq m spanning across seven floors.

Metro Holdings chairman Winston Choo noted that this strategic investment through the joint venture will provide the group an opportunity to tap its retail expertise and network to enhance the value offerings of this property.

Sembcorp Industries

A unit of mainboard-listed Sembcorp Industries (SCI) has signed an agreement to divest its Singapore medical waste division for $20 million to TEE Medical Services, part of construction engineering company TEE International.

The sale will result in an expected net gain of around $15 million, SCI said.

Sembcorp Environment's medical waste division specialises in the treatment and disposal of biohazardous and pharmaceutical waste, and was sold to a equal share, joint venture between unit TEE Infrastructure and Asia Enviro Services.

The total proceeds of $20 million was derived by taking into account the earnings and book value of the business and the relevant transaction multiples, SCI said in an exchange filing.

Announcing the divestment, SCI group president and chief executive Neil McGregor said that it was in line with the group's strategic efforts to improve performance and strengthen its balance sheet.

"This includes sharpening our attention to the divestment of peripheral utilities assets to recycle capital and unlock value," he said.

A version of this article appeared in the print edition of The Straits Times on May 18, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe