Singapore Food Industries Obtains In-Principle Approval for Main Board Listing on Stock Exchange of Singapore

Singapore, Oct 22, 1999

- 125 million vendor shares to be offered via IPO in November 1999

SembCorp Industries announces that its food technology subsidiary Singapore Food Industries (SFI) has received in-principle approval for a listing of its entire equity and for an initial public offering of 125,000,000 shares of $0.05 each on the Stock Exchange of Singapore.

The initial public offering, representing 25 per cent of SFI’s equity, are vendor shares comprising 18,750,000 shares for public subscription and 106,250,000 placement shares inclusive of 12,500,000 shares reserved for purchase by employees and business associates of SFI and the SembCorp Industries Group.

Mr Tay Siew Choon, Managing Director and Deputy CEO of SembCorp Industries and SFI’s Chairman said: ""Our objective is to position SFI as a major food company in Singapore involved in the processing and distribution of essential and fresh foods. A public listing will give SFI greater access to capital markets and will help them grow faster and be more competitive both in Singapore and beyond our shores.""

He added: ""SFI has a strong management team and they have operations in the UK, China and Australia. Our vision is to see them become an industry leader on the world stage.""

The offer price will be determined through a book-building process and a red herring prospectus will be issued.

As the price will be fixed via book-building, the proceeds of the vendor sale and the resultant change in SembCorp Industries’ NTA cannot be estimated presently. Upon the price being fixed, SembCorp Industries will disclose the appropriate details. This in-principle approval is valid till end-November 1999 and SFI expects to launch its IPO within this period subject to market conditions.

Following the vendor sale, SembCorp Industries will hold 75 per cent of the equity of SFI.

Overseas Union Bank is the lead manager, underwriter and placement agent for SFI's initial public offering.

Released on October 22, 1999

For more information, please contact:
Chow Hung Hoeng (Ms)
Group Corporate Relations
Tel: (65) 731 1729
Fax: (65) 738 4904

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