Sembcorp Industries' stock surged 3.14% during intraday trading on Wednesday, following the announcement of a strategic investment by its subsidiary, Sembcorp Utilities, in Aster Power.

The positive movement came after Sembcorp Utilities revealed it will acquire a 20% equity stake in Aster Power, a move that also establishes Sembcorp as the exclusive gas supplier for the company. This investment is set to support the expansion of Aster Power's electricity, steam, and renewable energy capacity to meet growing demand, thereby deepening the energy partnership between Sembcorp and Aster Chemicals and Energy.

The deal is expected to strengthen Sembcorp's ability to serve Singapore's industrial sector, with Aster Group viewing the partnership as a way to enhance energy reliability and support its decarbonisation efforts. The transaction remains subject to regulatory approvals and the finalisation of definitive agreements.