Sembcorp Co-develops New Singapore-Sichuan Hi-tech Innovation Park in Chengdu, China
September 15, 2011
Sembcorp’s wholly-owned subsidiary, Sembcorp Industrial Parks, is co-developing a 1,000-hectare innovation park. The Singapore-Sichuan Hi-tech Innovation Park is located in the Chengdu Hi-tech Zone’s south park within the Chengdu-Chongqing Economic Zone.
An Investment Cooperation Agreement has been signed between Singapore-Sichuan Investment Holdings Pte Ltd (SSIH), a company incorporated in Singapore, and its Chinese partner the Chengdu Hi-tech Investment Group Co., Ltd with the Chengdu government (represented by the Chengdu Hi-tech Industrial Development Administrative Committee). The Agreement sets out the terms and obligations for the development of the innovation park and will take effect upon the signing of a joint venture agreement between SSIH and the Chengdu Hi-tech Investment Group.
Sembcorp holds 40% share in SSIH, a Singapore consortium that includes Temasek, Keppel and Ascendas. The SSIH and its Chinese partner, the Chengdu Hi-tech Investment Group Co., Ltd will in turn own 50:50 share in a Chinese incorporated company to co-develop the innovation park. The registered capital of the project company is approximately US$297 million, of which Sembcorp’s US$59.4 million equity investment will be internally funded.
The SSIH involves “related parties” as Sembcorp is an associate of Temasek and Temasek is a “controlling shareholder” of both Sembcorp and Keppel, holding 49.52% and 21.41% of their issued share capital respectively.
None of the directors of Sembcorp has any interest, direct or indirect in the investment.
The above transaction is not expected to have a material impact on the earning per share and net tangible assets per share of Sembcorp Industries for the current financial year.
By Order of the Board
Kwong Sook May