Sembcorp Industries says its 25-year concession from the local government entity in Batam, Indonesia, that lets its subsidiary supply potable water to residential and non-residential customers in the state, has expired on Nov 14.
PT Adhya Tirta Batam (PT ATB) in Batam, Indonesia, which is 50%-owned by Sembcorp Utilities Netherlands NV (SUNNV), was granted the 25-year concession in 1995.
Following the end of the concession, PT ATB has transferred and handed over certain assets to BP Batam.
PT ATB’s right or obligation to manage and operate said assets in Batam has ceased.
The end of the concession is not expected to have any material impact on the earnings per share (EPS) and net asset value (NAV) of Sembcorp for the financial year ending Dec 31.
Shares in Sembcorp closed 3 cents higher or 1.8% up at $1.69 on Nov 13.
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