SembCorp Industries Divests Its Entire Stake In Vietnam Service Apartment, Resulting In FY 2003 Gain Of S$8.6 Million

Vietnam, Oct 06, 2003

SembCorp Industries announces that its wholly-owned subsidiary, SembCorp Parks Holdings (“SembParks”), has today, completed the sale of its entire 95 per cent stake in RSC (Vietnam) Investments Pte Ltd (“RSCVI”) to Collingway (Vietnam) Limited. 

SembCorp Industries will receive cash proceeds of S$2.6 million and discharge S$28.5 million of loan guarantee obligations as a result of this divestment. The transaction will result in a gain of S$8.6m in SCI’s FY 2003 PATMI.

RSCVI is a subsidiary of SembParks and owns 60 per cent of RSC Joint Venture Company (RSCJV Co.).  RSCJV Co. owns and manages Norfolk Mansion, a 124-room service apartment located in Ho Chi Minh City, Vietnam. 

Rationale for the Divestment:

This sale is part of SembCorp Industries’ divestment of its non-core operations.

The Transaction:

The consideration was arrived at on a willing-buyer-willing-seller basis, taking into account the realisable value of the asset less liabilities. As of December 31 2002, RSCVI had a negative book value.

Financial Impact:

Assuming that the transaction was completed on January 1, 2002, the Group’s proforma EPS for FY2002 would have been 10.00 cents instead of 9.52 cents and NTA per share would have been 81.32 cents instead of 80.73 cents.

 

- END -

 

For media and analyst enquiries, please contact:

Tan Wah Khuan (Mr)
Senior Executive
Group Corporate Relations
SembCorp Industries
Tel: (65) 6723 3153
Fax: (65) 6822 3240
Email: tan.wahkhuan@sembcorp.com.sg

back to top