Sembcorp Industries is buying Veolia ES Singapore and the public cleaning business of Veolia ES Singapore Industrial for about $28 million in cash, it said yesterday.
The businesses have contracts for public and commercial waste and recyclable collections as well as associated properties, including a materials recovery facility, said Sembcorp.
Mr Neo Hong Keat, Sembcorp's senior vice-president (waste management), said: "After the acquisition, SembWaste's fleet of vehicles would have doubled to close to 400. Such scale will enable the business to invest in a more efficient trucking fleet using cleaner fuels."
The price, which will be internally funded, takes into account the earnings, book value of the business and existing contract values.
It is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp for the financial year ending Dec 31, 2020.
SembWaste and Veolia ES Singapore are among the four public waste collectors serving six sectors here, according to the National Environment Agency's website. Sembcorp shares closed 1.3 per cent down to $2.28 yesterday.
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