New Delhi, November 27, 2023 (PR) – Sembcorp Industries (Sembcorp) announces that it has signed two separate agreements to acquire a total of 428MW of wind assets in China and India.
Sembcorp’s wholly-owned subsidiary, Sembcorp Energy (Shanghai) Holding Co., Ltd, has signed an agreement with Envision Energy Co., Ltd to acquire 100% of the share capital in Qinzhou Yuanneng Wind Power Co., Ltd, (Qinzhou Yuanneng) for an equity consideration of approximately S$130 million[1]. Qinzhou Yuanneng owns 200MW of operational wind assets in Guangxi, China.
Separately, Sembcorp’s wholly-owned subsidiary, Green Infra Wind Energy Limited (GIWEL), has signed an agreement with Leap Green Energy Private Limited (Leap Green Energy), an independent power producer in Tamil Nadu, India. Under the agreement, GIWEL will acquire from Leap Green Energy, 100% of the share capital in two special purpose vehicles (SPVs) for an equity consideration[2] of approximately S$70 million[3]. The SPVs own 228MW of operational wind assets in Madhya Pradesh, Maharashtra and Rajasthan, India.
Sembcorp has signed agreements to secure 673MW of renewables capacity, since it announced its 2028 target to achieve 25GW of gross installed renewables capacity. This includes the proposed acquisition of 245MW of renewables assets in Vietnam announced on November 10, 2023. Upon completion of these acquisitions, Sembcorp’s gross renewables capacity will reach 12.6GW globally.
The acquisitions will be funded through a mix of internal cash resources and external fundings and are expected to be completed by the first half of 2024, subject to fulfilment of applicable conditions precedent in each case, including regulatory approvals.
These acquisitions are in the ordinary course of business and will not have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2023.
