SembCorp: Unlikely to rise much on news its 40%-owned SembSita Australia is the successful bidder for a solid waste management service provider in Australia. The target, WSN Environmental Solutions, owned by the NSW govt, won't contribute to grp’s FY10 earnings as the A$235m acquisition will be completed only by end of Jan11….
As SembSita's financial results are not publicly available, its contributions to Sembcorp can't be readily assessed. SembSita will fund the purchase using debt and shareholder funds, implying Sembcorp may help with the financing. The move should in the longer term help bolster Sembcorp's utilities business, an area it's been seeking to expand….
3Q10 utilities earnings +6.0%YoYat $59.2m, aided partly by water firm Cascal, which Sembcorp acquired in Jul. Resistance is at the $5.20 52-week high.
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