StockNews - SembCorp to sell its stake in Logistics arm

SembCorp Industries, which holds a 60.01% stake in SembLog, its logistics arm in Asia looks set to sell its shareholdings to Australia's laregst land transport group, Toll Holdings. In the offer for the shares, Toll Holdings have agreed to pay up to S$1.70 per share, working up to S$749 million for SembCorp's total share in SembLog. On top of that, should Toll Holdings gets more that 90% acceptance for its offer (whereby it can then delist the company), it would up the purchase price to S$1.80 per share equivalent to a total of S$1.4 billion. Currently, SembLog's share price is trading between S$1.76-1.77 per share, after it announced a poor set of results for the year 2005. The large drop in profits of SembLog is due to the sale of European associate KNI in early 2005.