SINGAPORE – Sembcorp Industries, a Singapore-listed energy company backed by state investment company Temasek, is considering selling its waste management unit, according to people with knowledge of the matter.

The company is working with a financial adviser on the potential divestment of SembWaste and could seek as much as US$700 million (S$927 million) for the unit, the people said. Other investment firms and companies in the industry have shown interest in the business, the people added, asking not to be identified as the process is private.

Deliberations are ongoing and Sembcorp may decide against proceeding with a deal, the people said. A representative for Sembcorp did not immediately respond to requests for comment.

SembWaste is an environmental services provider of waste management, public cleaning and recycling services, according to Sembcorp’s website. The company agreed to buy Veolia Environnement’s Singapore environmental services arm and public cleaning business for about $28 million in 2020, according to a statement.

Sembcorp’s businesses include renewable and conventional energy as well as urban development, water and waste, its website shows. It has a balanced energy portfolio of about 17.2 gigawatts and a project portfolio spanning more than 12,000ha across Asia. The company has a market value of US$5.5 billion.

Sembcorp closed at $4.18, up by almost 1 per cent, on Thursday. BLOOMBERG