Legal Challenge To Sembcorp's Divestment Of South African Water Assets

10 Nov 2020 by Local Press Report
SINGAPORE

The 718 million rand (S$70 million) sale of Sembcorp Industries' (SCI) South African municipal water assets, completed back in 2018, may potentially be reversed as a result of legal proceedings. In December 2018, SCI announced that its wholly-owned subsidiary Sembcorp Utilities (Netherlands) NV (SUNNV) had sold the entire stake in Sembcorp Utilities South Africa (SUSA) and the 100 per cent effective stake in Sembcorp Silulumanzi to South African Water Works. Although it had obtained municipal consent before the sale was completed, the consent is now being challenged in the South African High Court by a party who had made an unsuccessful bid to become a local minority shareholder in Sembcorp Silulumanzi under the government's Broad-Based Black Economic Empowerment programme.

Source: Business Times

Source: Business Times