Post Reply
681-700 of 16278
Wont happen today. Going above $6 today.
Ling9345 ( Date: 12-Dec-2025 12:24) Posted:
|
Always happens,up first drop later
Continue up from today after continue down for so many weeks. Today first stop $6.08?
This will be almost definite as I think. Provided that hedge funds (having obtained a good financial sense of Alinta Energy acquistion details) wind down their short positions, along with coming mega millions dollars inflowing in SCI from wealthy funds who claim SCI as top preferable stock among three big SG banks as early as today.
Timer78 ( Date: 12-Dec-2025 09:47) Posted:
|
Sembcorp to acquire Australian power company Alinta Energy in A$6.5 billion deal
The asset is country&rsquo s fourth-largest utilities provider with around 1.1 million customers
[SINGAPORE] Sembcorp Industries : U96 -0.34% will acquire Australia&rsquo s fourth-largest utilities provider Alinta Energy.
In a bourse filing on Thursday (Dec 11), Sembcorp said that it had entered a share sale agreement with Alinta&rsquo s current owner, Hong Kong-based holding company Chow Tai Fook Enterprises.
The agreed enterprise value is A$6.5 billion (S$5.6 billion). The estimated purchase price is A$5.6 billion, which will be paid in cash through bridge and working capital facilities.
Wong Kim Yin, group chief executive officer of Sembcorp, said: &ldquo This acquisition gives us a strong position in a key developed market and provides a scalable platform for Sembcorp to grow renewables and low-carbon solutions.&rdquo
The move will add &ldquo meaningful scale and diversification to Sembcorp&rsquo s portfolio across renewables, energy storage and gas assets&rdquo , added the company in its bourse filing.
Sembcorp is making this purchase through its subsidiaries Sembcorp Australia and Sembcorp Energy Australia. Sembcorp Australia will acquire all the shares of Pioneer Sail Holdings (PSH) &ndash the parent company of Alinta, which is owned by Chow Tai Fook Enterprises &ndash and Sembcorp Energy Australia will buy all the shares of Latrobe Valley Power (Holdings), which is owned by PSH.
&ldquo Immediate&rdquo earnings and returns
The acquisition is expected to be completed in the first half of 2026, subject to shareholder and regulatory approvals.
Sembcorp added that the acquisition will deliver immediate earnings and returns accretion for its shareholders. On a pro forma basis, earnings per share will increase by 14 per cent to S$0.651 and return on equity (ROE) will increase to 22.5 per cent from 19.7 per cent, for the 12 months ended Jun 30, 2025.
Alinta is a major Australian utility company, supplying gas and electricity to around 1.1 million customers. It owns major power-generation facilities of around 3.4 gigawatts, including five gas-fired power plants and one wind farm.
Its net profit for the financial year ended June 2025 was up 15 per cent year on year at A$483 million, and its ROE was 14.6 per cent.
Chow Tai Fook acquired Alinta in 2017 for more than US$3.1 billion, from a group of lenders and investors, including TPG Capital.
Latrobe Valley Power (Holdings), which is also included in the sale, owns and operates the Loy Yang B coal-fired power station in the Australian state of Victoria.
Sembcorp noted that the move marks its entry into Australia, an AAA-rated country that offers a stable regulatory environment that supports long-term investment. Australia&rsquo s target to reduce emissions to 62 to 70 per cent below 2005 levels by 2035 and a legislated 2050 net-zero goal are &ldquo directly aligned&rdquo with Sembcorp&rsquo s own ambitions.
It also enables scalable investments in renewables and balances the firm&rsquo s portfolio towards developed markets.
But Sembcorp also observed that its near-term emissions will increase because of the acquisition, with emissions intensity expected to increase to around 0.36 tonnes of carbon dioxide equivalent per megawatt hour, with absolute emissions at 18.1 million tonnes of carbon dioxide equivalent in 2025.
&ldquo (Thus), Sembcorp will not meet its 2028 emissions intensity and 2030 absolute emissions targets,&rdquo it said.
Sembcorp&rsquo s Alinta Energy buy: One step forward on earnings, two steps back on emissions?
Sembcorp says acquisition driven by Alinta&rsquo s renewables pivot and not by its Loy Yang B coal-fired power station
[SINGAPORE] Sembcorp Industries&rsquo acquisition of Alinta Energy is a &ldquo half-full&rdquo and &ldquo half-empty&rdquo deal, said Citi Research analyst Luis Hilado.
In his late-night note on Thursday (Dec 11), he stated that the deal was half-full on earnings per share accretion, and half-empty as it will set Sembcorp&rsquo s decarbonisation targets back.
Sembcorp announced the deal to buy Australia&rsquo s fourth-largest utilities provider after market close on Thursday. It will pay Alinta&rsquo s current owner, Hong Kong-based holding company Chow Tai Fook Enterprises, A$5.6 billion (S$4.8 billion) in cash through bridge and working capital facilities for an agreed enterprise value of A$6.5 billion.
While the company said the move will add &ldquo meaningful scale and diversification to Sembcorp&rsquo s portfolio&rdquo , Hilado pointed out that the acquisition includes Alinta&rsquo s 1.2 gigawatt coal-fired power plant, which will &ldquo initially&rdquo take Sembcorp&rsquo s decarbonisation targets &ldquo backwards&rdquo .
Carbon emissions
Recent projections put Sembcorp&rsquo s carbon emissions intensity on a downward trajectory. The integration of Alinta&rsquo s coal assets in 2026 will reverse this trend, raising emissions intensity to an estimated 0.26 tonne of carbon dioxide equivalent per megawatt hour of power by 2035.
This puts the group well off course for its 2028 target of 0.15 tonne of carbon dioxide equivalent per megawatt hour of power.
However, Sembcorp management had said that its interest in Alinta was driven by the renewables pivot, not by the Latrobe Valley Power-owned Loy Yang B coal-fired power station.
The acquisition thus enables scalable investments in renewables and balances the firm&rsquo s portfolio towards developed markets, said Sembcorp.
Alinta has 10.4 gigwatts of development projects that are largely in renewables, which will eventually &ldquo surpass&rdquo the coal-fired plant, which will represent less than 5 per cent of Sembcorp revenue, said Hilado.
The deal is also a financially strong one for Sembcorp, said the analyst.
The Singapore company is acquiring Alinta at an implied valuation of seven times its enterprise value to earnings &ndash a steep discount compared with Sembcorp&rsquo s own trading valuation of about 10 times.
Even when accounting for interest costs on the A$6.5 billion debt facility, projected at about 3.5 per cent, the transaction is expected to be earnings accretive, said Hilado.
He noted that the deal could boost pro forma underlying profit by 22.5 per cent, and enhance return on equity by a significant 460 basis points &ndash or 4.6 per cent.
For shareholders, Sembcorp management committed to maintaining a dividend per share of at least S$0.23, with upside potential as earnings improvements from the Alinta purchase materialise.
Alinta has 10.4 gigwatts of development projects that are largely in renewables, which will eventually ?surpass? the 1.2 gigwatts coal-fired plant
Wisedom ( Date: 11-Dec-2025 21:07) Posted:
|
Yes, this is a key information for investors' decision. Since cash from operating activities are the most important for investors' decision, SCI's positive cash flow is about S$1.4bn for 2024 while I heard that Alinta's energy's positive cash flow is about A$700M-A$800M. All these totalling about S$2bn in strong operating cash inflow are helpful to reduce borrowing much (under cash flow from finance activity). As regards the immediate earning from Alinta Energy for the year ended 3 June 2025, SCI's Price/earning ratio is 8.94, much lower given closing $5.82 yesterday. No shares placement or rights issue is great for investors! Hedge funds being big shortists might have a very poor financial perspectives being lent to the market share price.
Sgvale ( Date: 12-Dec-2025 07:18) Posted:
|
post something more credible lah. The numbers say otherwise. In FY2023, its renewables profit before exceptional items grew 42% to S$200 million, driven by contributions from China and India. Overall group net profit before exceptional items rose around 38% to S$1 billion. Even with operational headwinds like curtailment in China, these assets clearly added value and contributed to growth, not failure
share456 ( Date: 12-Dec-2025 00:34) Posted:
|
6.50 by next week.
Agreed . Waiting for $5
share456 ( Date: 12-Dec-2025 00:34) Posted:
|
Acqusition of Alitan Energy is of strategic move and expand of market shares. Don't understand why the sell down?
1. "Financing" from ah gong likely so no need righrs or placement
2. Leverage up but net profit also up
3. Demand for EVs and data centres remain, esp if recession comes along in 2026
Quote : Sembcorp said immediate earning from deal "On a pro forma basis, earnings per share will increase by 14 per cent to S$0.651 and return on equity (ROE) will increase to 22.5 per cent from 19.7 per cent, for the 12 months ended Jun 30, 2025."
cannot grow in uk, china and india.
now want to buy growth in australia.
alinta is 4th largest in australia.
share price will drop because alinta is weak competitor in australia
now want to buy growth in australia.
alinta is 4th largest in australia.
share price will drop because alinta is weak competitor in australia
This is not a big concern at all. Funding has no issue at all with Government support as SCI is state owned. SCI plans to invest S$14 billion by 2028 primarily in renewables, funding it through a mix of operating cash flow (50%), project debt (30%) from low interest-bearing green and sustainability loans and corporate funding/capital recycling (20%) like selling non-core assets and IPO listing new shares issue. Annual project returns are likely 10% to 15% in term of cash inflow, beating the low interest risk, thus debts will be quickly reduced annually
cherintc ( Date: 11-Dec-2025 22:57) Posted:
|
Gone case and no hope for this Corp
This is big. Sembcorp market cap is only 12b AUD. Alinta is 6.5b AUD, more than 50%
Reality came already at A$6.5Bn deal! In all, this deal exceed 25 GW of renewable energy. Alinta Energy has an excellent prospect of strong growth. SCI has no issue funding the acquisition with a mixture of cash from operating activities and loan under SCI's S$14 bn investment programme. More analysts may turn positive!
Wisedom ( Date: 11-Dec-2025 07:43) Posted:
|
accumulate slowly ...