Divestment Of Used Lead Acid Batteries Joint Ventures In China
June 03, 2008
Sembcorp Industries Ltd (the “Group”) announces that its wholly-owned subsidiary, Sembcorp Environment Pte Ltd, has divested its entire shareholdings in the 50/50 joint venture companies, Jiangsu Sembcorp Chunxing Alloy Company and Chongqing Sembcorp Chunxing Alloy Company.
The joint venture companies were incorporated in the People’s Republic of China and in the business of recovery and sale of processed lead from used lead acid batteries (ULABs) to battery manufacturers in the People’s Republic of China.
The net sale proceeds from the divestments amount to S$26.7 million. This approximates the value of the Group’s investment in the joint ventures as at December 31, 2007. The selling price was derived based on the carrying value of the Group’s investment in the joint ventures as at December 31, 2007.
These divestments are not expected to have a material impact on the Group’s earnings per share and the net tangible asset value per share for the financial year ending December 31, 2008. None of the directors or the controlling shareholders of Sembcorp Industries has any interest, direct or indirect, in the divestment.
By Order of the Board
Kwong Sook May