Fifth Viet-S'pore industrial park breaks ground

Sembcorp is lead partner in S'pore consortium in the JV located in central Vietnam

 

By

 

Kelly Tay kellytay@sph.com.sg

STRATEGIC LOCATION


VSIP Quang Ngai will offer manufacturers a new and alternative investment locale away from Vietnam's northern and southern regions, where labour markets are tighter and costs continue to rise - PHOTO: SEMBCORP DEVELOPMENT

In Quang Ngai

UNDETERRED by the many challenges facing Vietnam's economy, Sembcorp has once again upped its investment in the socialist republic - this time by building central Vietnam's first large-scale industrial park worth US$337.8 million.

This latest of five Vietnam-Singapore Industrial Parks (VSIPs) is sited in Quang Ngai province, about 90 minutes' flight south of Hanoi. It offers manufacturers a new and alternative investment locale that is away from Vietnam's northern and southern regions, where labour markets are tighter and costs continue to rise.

VSIP Quang Ngai will take shape in the form of a 1,120ha industrial park and integrated township; the industrial park will take up 600ha, with the other 520ha slated for commercial and residential purposes.

Next Biz Trust - Semb Corp-Green?

Hyflux and Kep Corp have unlocked their shareholder's value by offloading their assets into Biz Trusts.

When will Semb Corp follow them and unlock its shareholder's value by offloading its assets into S-Green or Semb Green?

Mr Tang, please don't let us wait too long and anounce your plan at H1 2010 result briefing! LOL

SEMBCORP FREE TO LAUNCH TENDER OFFER, CASCAL'S REQUEST FOR PRELIMINARY INJUNCTION DENIED

Sembcorp Industries Ltd (the Company) would like to provide an update on the legal action commenced by Cascal N.V. (Cascal) in the United States in connection to the proposed voluntary tender offer for the common stock of Cascal as announced on April 26, 2010.


On May 11, 2010, Cascal filed a motion for a temporary restraining order and/or for a preliminary injunction to stop the launch of the offer. An initial preliminary hearing was held before the United States District Court for the Southern District of New York on May 12, 2010, during which Cascal withdrew its motion for a temporary restraining order, Sembcorp agreed not to launch the voluntary tender offer before May 21, 2010 and the court set a May 19, 2010 hearing on Cascal's motion for a preliminary injunction.

The matter came before the court again as scheduled on May 19, 2010. After considering all of the evidence presented by the parties, including the sworn declarations of key individuals, the judge hearing the matter concluded, among other things, that based on the record before the court there was no likelihood of Cascal succeeding on its legal claims. The court then denied Cascal's motion for a preliminary injunction and cleared the way for the tender offer to go forward.

The Company is pleased that the court has found no basis for Cascal's claim that the prospective tender offer is in breach of any laws, regulations or contractual obligations and it remains committed to completing the transaction.

Sembcorp Industries in deal to acquire US water services firm Cascal for US$206m

By Desmond Wong


SINGAPORE: Sembcorp Industries is making an offer to buy the US-listed listed water and wastewater services firm Cascal for as much as US$206 million.

As part of the deal, Sembcorp's utilities unit has offered to buy a 58.4 per cent stake in Cascal now owned by Biwater Investments.

Sembcorp is offering US$6.75 per share if it gets at least 80 per cent of the outstanding common shares have been validly tendered and not withdrawn.

The price will be brought down to US$6.40 if the number of shares tendered is less than 80 per cent.

Sembcorp said it will then make a tender offer for the remaining shares that it doesn't already own.

Sembcorp added this acquisition will transform it into a global water service provider and provide the platform for the group to accelerate its future growth.

The entire acquisition is expected be funded by internal funds and borrowings.

Sembcorp expects the purchase to be accretive to earnings starting from the second year.

Cascal is a leading provider of water and wastewater services.

The company operates in 21 locations across eight countries - the United Kingdom, South Africa, Indonesia, China, Chile, Panama, Antigua and the Philippines and four continents.

It has a growing customer base of homes and businesses that represent a total population of about 4.7 million people.