Sembcorp Utilities to Acquire Cascal

Singapore’s Sembcorp Utilities said it plans to acquire a stake in US-based firm Cascal for $206m.

Sembcorp has offered a maximum price of $6.75 a share for 80% of Cascal’s outstanding shares and said the offer stands at $6.40 if it gets less than 80%.

Sembcorp Industries group president and chief executive Tang Kin Fei said post acquisition the company will have water and wastewater facilities in 31 operating locations in 11 countries around the world.

The company said its water and wastewater capacity would increase by 50% to almost six million cubic metres per day from four million.

The deal will also help it enter new markets such as South Africa and Latin America.

Sembcorp Utilities, a wholly owned unit of Sembcorp Industries, has agreed with Biwater Investments to buy a 58.4% stake in the firm, according to Reuters.