Sembcorp buying Veolia's public waste collection, cleaning businesses

SembWaste's materials recycling facility in Tuas. SembWaste and Veolia ES Singapore are among the four public waste collectors serving six sectors here, according to the National Environment Agency's website.
SembWaste's materials recycling facility in Tuas. SembWaste and Veolia ES Singapore are among the four public waste collectors serving six sectors here, according to the National Environment Agency's website.LIANHE ZAOBAO FILE PHOTO

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.

GREATER EFFICIENCY

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.

MR NEO HONG KEAT, Sembcorp's senior vice-president (waste management).

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.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on January 04, 2020, with the headline 'Sembcorp buying Veolia's public waste collection, cleaning businesses'. Print Edition | Subscribe