SINGAPORE (July 2): Sembcorp Industries’ wholly-owned urban business Sembcorp Development and Japanese property firm CRE Asia has formed a joint venture company, Sembcorp Infra Holdings (SIH), on Thursday.
SIH is the direct holding company of an existing entity, Sembcorp Infra Services (SIS).
SIS has recently increased its share capital by issuing new 6,836,614 ordinary shares at the issue price of US$1.21 ($1.69) per share for cash to a new joint venture partner.
Following the allotment, Sembcorp Development’s effective stake in SIS has reduced to 52.5% from its original stake of 70%.
The value of the new shares was derived taking into account the projected cash flows of SIS’s existing warehouse space in Vietnam and its growth potential.
Sembcorp says these transactions were undertaken to facilitate the expansion of warehousing properties in Sembcorp Development’s VSIP (Vietnam Singapore Industrial Park) integrated township and industrial park in Hai Phong City, Vietnam.
Shares in Sembcorp Industries closed 3 cents lower, or 1.6% down, at $1.82.
