Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — Merger or Acquisition (September 2022)
12 slides from Sembcorp Industries's merger presentation, Sep 5, 2022
Slide 1: Proposed Sale of Shareholding in Sembcorp Energy India Limited
Proposed Sale of Shareholding in Sembcorp Energy India Limited September 5, 2022 RESTRICTED
Slide 2: Contents
Contents 1 Objectives of Proposed Sale 2 Transaction Overview 3 Transaction Rationale 4 Indicative Timeline 2 © Sembcorp Industries 2022 RESTRICTED
Slide 3: Objectives of Proposed Sale
Objectives of Proposed Sale 1 2 3 4 5 Accelerate the Stable transformation Strengthen Preserve value Protect transition to a of SCI’s SCI’s balance for stakeholders’ proven and portfolio from sheet shareholders interests trusted long- brown to term partner green 3 © Sembcorp Industries 2022 RESTRICT
Slide 4: Transaction Overview
Transaction Overview • Proposed Sale: Sembcorp Industries Ltd (“SCI”), through its wholly-owned subsidiary, Sembcorp Utilities Pte. Ltd. (“SCU”), is selling 100% of its shares in Sembcorp Energy India Limited (“SEIL”). SEIL shares (“SEIL Sale Shares”) will be acquired by Tanweer Infrastructure Pte.
Slide 5: Accelerate the Transformation of SCI's Portfolio from Brown to Green
TRANSACTION RATIONALE 1 Accelerate the Transformation of SCI’s Portfolio from Brown to Green GHG Emissions Intensity % Share of Total Group Capacity (tCO2e/MWh) from Renewables 0.6 0.54 0.51 60% 51% 0.5 50% 39% 43% 0.4 0.4 0.32 40% 0.3 30% 25% 0.2 20% 0.1 10% 0 0% 2020 2021 2021 2025 Target 2020 202
Slide 6: Strengthen SCI's Balance Sheet
TRANSACTION RATIONALE 2 Strengthen SCI’s Balance Sheet SCI’s leverage ratios improve – strengthening the balance sheet for further green growth Debt / EBITDA EBITDA / Interest 0. 8 Debt / Capitalisation Peers’ range Peers’ range 0. 75 Peers’ range Pure renewables2,5: 7.8x Water & waste3,5: Pure rene
Slide 7: Preserve Value for Shareholders
TRANSACTION RATIONALE 3 Preserve Value for Shareholders Sale of SEIL implies Price/Book Value1 of 1.0x; Financial metrics on a pro forma basis remains stable EBITDA PATMI Net Asset Value 1005 605 865 (238) 4,222 (2,150) 4,175 905 490 (101) 2,103 4500 805 505 79 468 95 721 4000 705 3500 405 S$ millio
Slide 8: Protect Stakeholders' Interests
TRANSACTION RATIONALE 4 Protect Stakeholders’ Interests Power Distribution Customers and End Users Service over 2.5 million households with essential energy Continue to fulfill contractual obligations to power distribution companies via long-term and medium-term contracts, and merchant market pa
Slide 9: Stable Transition to a Proven and Trusted Long-term Partner
TRANSACTION RATIONALE 5 Stable Transition to a Proven and Trusted Long-term Partner Operational excellence and GHG emissions intensity reduction initiatives at SEIL supported through technical service agreement and a GHG Reduction Incentive Rate1 The Tanweer Consortium led by OIC OIC has a strong tr
Slide 10: Indicative Timeline
Indicative Timeline 5 Sep 2022 Oct 2022 Nov 2022 6 months after EGM Announcement Circular despatch EGM for shareholders’ Expected completion1 approval Notice of EGM Transfer of SEIL to Purchaser 10 © Sembcorp Industries 2022 1 Please refer to the Announcement for a summary of the Conditions Preceden
Slide 11: Disclaimer
Disclaimer This presentation should be read in conjunction with the Sembcorp Industries’ announcement dated 5 September 2022, in relation to the proposed sale of Sembcorp Utilities’ entire shareholding in Sembcorp Energy India Limited. A copy of the Announcement is available on http://www.sgx.com. T
Slide 12: Thank you
Thank you RESTRICTED
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