SEMBCORP Industries, an energy company backed by state-owned investor Temasek Holdings, is considering selling its waste management unit, according to people with knowledge of the matter.

 

The company is working with a financial adviser on the potential divestment of SembWaste and could seek as much as US$700 million for the unit, the people said. Other investment firms and companies in the industry have shown interest in the business, the people said, asking not to be identified as the process is private.

 

Deliberations are ongoing and Sembcorp may decide against proceeding with a deal, the people said. A representative for Sembcorp didn&rsquo t immediately respond to requests for comment.

 

SembWaste is an environmental services provider of waste management, public cleaning and recycling services, according to Sembcorp&rsquo s website. The company agreed to buy Veolia Environment&rsquo s Singapore environmental services arm and public cleaning business for about S$28 million in 2020, according to a statement.

 

Singapore-listed Sembcorp&rsquo s businesses include renewable and conventional energy as well as urban development, water and waste, its website shows. It has a balanced energy portfolio of about 17.2 gigawatts and a project portfolio spanning over 12,000 hectares across Asia. The company has a market value of US$5.5 billion. BLOOMBERG

 

SHARES of Sembcorp Industries : U96 +1.5% hit an eight-year peak on Wednesday (Mar 15), as large volumes changed hands in the first half of trading day.

 

The index counter hit a record S$4.07, up S$0.07 or 1.8 per cent as at 10 am with 2.4 million securities traded. The last time the group hit such levels was in June 2015.

 

As at the midday trading break, the counter declined slightly to S$4.05, up S$0.05 or 1.3 per cent, with 3.4 million securities moved.

 

One married deal took place prior to the market open at 8.31 am, with 159,300 Sembcorp shares going for S3.995 apiece, ShareInvestor data indicated.

 

Sembcorp announced Monday that its 80 per cent-owned joint venture with Jinko Power Technology won a contract to build, own and operate a 500 megawatt solar power plant in Oman.

 

The group said the power plant, once completed, will augment its well-established presence in Oman&rsquo s power and water desalination sector. The value of the deal was not disclosed.

 

The group owns 40 per cent of the Salalah Independent Water and Power Plant, which it calls &ldquo one of the most energy-efficient power and water plants&rdquo in the Dhofar region in the Sultanate of Oman.

 

Last Friday, the group bought back 702,600 of its shares at S$3.8035 apiece by way of market acquisition.