StockNews - Australia Toll Holdings & SembCorp Logistics

Yesterday, SembCorp Industries (SCI) denied any deal being discussed with regards to its stake in associate company SembCorp Logistics (SCL). Currently, SCI holds 60.5% of SCL and at current market prices, this would translate to about S$763m. It has been suggested by many stockbroking firms that SCI is looking to divest its stake in SCL and its Engineering & Construction arm for some time especially since SembCorp Logistics failed JV with a European logistics firm last year. With divestment of its underperforming logistics & construction arm, SCI is likely to concentrate more on the profitable utilities business, and with a huge billion dollar expected to come in from the Middle East, there should be an upside to SCI's price. If any formal takeover offer is published, SembCorp Logistics could also become a new focus in the market.