goodwe september

Sembcorp Industries to Acquire 35% Stake in Chinese Renewables Portfolio

0
414
Gujarat Now The Fourth State To Meet RE Targets For 2022: Report

Reading Time: 2 minutes

Contendre

Sembcorp Industries (Sembcorp) announces that it has, through its wholly-owned subsidiary Sembcorp Energy (Shanghai) Holding Co. Ltd, signed an equity transfer agreement with China state-owned investment holding company, State Development Investment Corporate Group (SDIC)’s Shanghai SDIC Xieli Development Equity Fund Partnership (Xieli Fund), to take over its 35% interest in SDIC New Energy for an equity consideration of approximately RMB 1.5 billion (approximately S$320 million). SDIC New Energy’s portfolio consists of 30 operational wind and solar PV assets with a total gross installed capacity of about 1.9GW located across seven provincial regions in China. SDIC Power, the public-listed power arm of SDIC, is the remaining 65% shareholder of SDIC New Energy.

pixon september

Wong Kim Yin, Group President & CEO, Sembcorp Industries said: “We are committed to achieving our Group target of 10GW of gross installed renewables capacity by 2025. China is an important part of our brown to green transformation plan. We are pleased to partner SDIC Power, to grow the joint venture together. Along with our recently announced 658MW acquisition, our Group renewables portfolio is expected to reach a gross capacity of 6.1GW.”

Also Read  Ranhill Utilities Bhd Receives A 4-Year Extension To A Solar Power Purchase Agreement

Alex Tan, CEO of China, Sembcorp Industries added “Sembcorp is keen to build up our renewables portfolio in China, the world’s largest and fastest-growing renewables market. SDIC Power is a top SOE power company in China, with a strong track record and capabilities in the China power and clean energy industry. We believe we have complementing strengths, and we are committed to work alongside SDIC Power to drive further growth in renewables through this joint venture.”

The consideration for the transaction was determined on a willing-buyer willing-seller basis, considering the operational quality, financials and cashflow generation of the assets via customary valuation techniques. Sembcorp’s investment will be funded through a mix of internal cash resources and external borrowings. Completion of the acquisition is expected in the first half of 2022, and is subject to customary conditions precedent including regulatory approvals and the signing of a joint venture agreement with SDIC Power. The acquisition is expected to be accretive to earnings from the first year of the acquisition. For more information on the SDIC New Energy portfolio, please see the Appendix.

Also Read  Mahindra CIE Automotive to Acquire 26 % Share in Strongsun Solar

This acquisition is in the ordinary course of business of Sembcorp Industries and is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2021.

– End –

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.