Sembcorp Increases Stake In Singapore Consortium Involved In Sino-Singapore Nanjing Eco High-Tech Island
September 30, 2010
Sembcorp Industries announces that its fully-owned subsidiary, Sembcorp Industrial Parks, has increased its interest in Singapore Intelligent Eco Island Development (SIEID) from 30% to 43% following its acquisition of 9,230,000 shares in SIEID from Surbana Land for a total consideration of S$9.23 million. The remaining 57% of SIEID is held by Yanlord Land. The consideration paid per share is the same as the original amount injected by Surbana Land.
SIEID represents the Singapore consortium involved in the Sino-Singapore Nanjing Eco High-Tech Island, Nanjing’s largest foreign collaborative project, which is set to be a showcase of sustainable urban development. SIEID has a 50-50 joint venture with Nanjing Jiangdao Investment & Development Co, Sino-Singapore Nanjing Eco Hi-tech Island Development Co (SNEHID), which is incorporated in China and which will own and develop the project. With Sembcorp Industrial Parks’ increased share in the Singapore consortium, its effective share in SNEHID will increase from 15% to 21.5%. The increase is in line with Sembcorp’s strategy to promote sustainable urban developments through its integrated townships business.
The acquisition of additional shares in SIEID is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2010.