KKR, Macquarie eyeing Singapore's waste management firm SembWaste - sources

Seatrium

09/05/2023 10:06

By Kane Wu and Yantoultra Ngui
       HONG KONG/SINGAPORE, May 9 (Reuters) - U.S. private
equity group KKR & Co Inc  KKR.N  and Australia's Macquarie
Asset Management are among potential bidders for the waste and
recycling management arm of Singapore's energy group Sembcorp in
a deal that could value the unit at around $500 million, said
two sources with knowledge of the matter.
    Sembcorp, which is 49.3% owned by Singapore's state investor
Temasek Holdings, has hired HSBC  HSBA.L  to run the sale of
SembWaste, according to the sources. HSBC declined to comment.
    First-round of non-binding bids are due by early June, said
one of the sources, declining to be named as the matter is
private. 
    Last year, SembWaste's earnings before interest, taxes,
depreciation, and amortization was S$50 million ($37.75
million), one of the sources added.
    Potential bidders also include global infrastructure
investment manager I Squared Capital, the sources added. 
    KKR and Macquarie Asset declined to comment. Sembcorp and I
Squared Capital did not immediately respond to requests seeking
comment.
    The sale comes at a time when many cities in Southeast Asia
need more investment in the waste management sector, due to
their rapid growth in population and a shift towards both
greener and cleaner energy and environment. 
    Last year, Singapore's asset manager Keppel consortium
bought a 80% stake in environmental services firm 800 Super
Holdings for S$304 million.
    SembWaste is one of three public waste collectors appointed
by Singapore's National Environment Agency to provide waste and
recyclable collection services to residential, schools and trade
premises in the city-state, according to its website.
    Besides SembWaste, Singapore-listed Sembcorp is also
involved in renewable energy businesses and has a balanced
energy portfolio of 17.2 gigawatt, with 10.3 gigawatt of gross
renewable energy capacity comprising solar, wind and energy
storage globally, according to its website.
    Shares of Sembcorp have surged 36.5% year-to-date, beating
the local benchmark stock index's  .STI  0.2% rise. It commands
a market value of $6.2 billion, according to Refinitiv data.
    
($1 = 1.3245 Singapore dollars)

 (Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in
Singapore; editing by Simon Cameron-Moore)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))