Sembcorp shares rally on talk of strategic review of business

SINGAPORE – Shares of Sembcorp Industries rallied on March 18 on talk that the company is carrying out a strategic review of its business, with various possibilities under consideration, including potentially going private or selling some assets.

The Singapore firm, which is backed by state-owned Temasek, is working with a financial adviser on the review, people with knowledge of the matter said. 

Considerations are at an early stage and Sembcorp may decide not to pursue any deal, they added.

Sembcorp shares jumped when trading began on March 18 and rose as much as 4.2 per cent to $6.355, before closing up 1.6 per cent at $6.20.

A spokesperson for Sembcorp said that the company continually assesses options to enhance shareholder value, including investments, divestment, restructuring, listing and capital management. 

“As part of such assessments, we work with consultants from time to time, as the needs arise” the spokesperson said. “The assessed options may or may not result in any form of transaction.” 

“We will make the necessary announcements in accordance with the requirements in the SGX-ST Listing Manual where an initiative is material and has progressed to a stage where there is a high level of certainty,” the spokesperson added. 

Sembcorp’s businesses include wind, solar, hydro and energy storage operations in South-east Asia, China, India, Britain and Middle East, as well as gas and diesel-fired power plants in similar geographies, urban solutions such as waste and water management, and corporate decarbonisation services. 

Past restructurings include Covid-19-hit Sembcorp Marine’s demerger in 2020. Sembcorp Industries chief executive at the time said the move would help the firm focus on the energy and urban sectors.

Sembcorp Industries also completed divestments in Chile, China and Panama that year. In 2024, it announced the sale of Sembcorp Environment for $405 million.

Sembcorp’s shares have climbed more than 250 per cent since the end of 2020, giving the company a market value of $10.7 billion. Net income rose about 7 per cent in 2024 to $1 billion, while sales slipped 5.2 per cent to $3.21 billion. BLOOMBERG