Singapore-based Sembcorp Industries plans to acquire a 28 per cent stake in its Indian unit, Sembcorp Green Infra (SGI), from private equity firm IDFC Alternatives for `1,410.2 crore.
With this acquisition, Sembcorp will become the sole owner of SGI. In February 2015, Sembcorp Industries acquired a 60 per cent stake in SGI for about `1,060 crore, marking its entry into India’s renewable energy market. This was gradually increased to 72 per cent by mid-August 2017.
“Buying IDFC’s stake in SGI reaffirms Sembcorp’s commitment to a long-term presence in India. The deal will allow us to drive SGI’s growth as the 100 per cent owner, and increase our investment in a wind and solar generation portfolio that strongly complements our thermal power assets in the country,” said Neil McGregor, Group President and CEO of Sembcorp Industries.
He added, “Strengthening our investment in renewables will also help us stay abreast of advances in greener power generation, and will enable us to deliver electricity to our customers in an increasingly sustainable manner.”
Vipul Tuli, CEO and Country Head of Sembcorp India, added, “With the far reaching energy reforms and electrification underway in India, there is a demand for both renewable and thermal power in the country. Sembcorp’s acquisition of IDFC’s stake in SGI strengthens our position as a reliable provider of clean and low cost power to support India’s growing energy needs.”
SGI has close to 1,200 megawatts of wind and solar power capacity in operation and under development. As at end-2016, the net asset value and net tangible asset value at SGI level were S$427.6 million and S$426.9 million respectively. The net profit at SGI level for the 12-month financial period ended December 31, 2016 was approximately S$39.0 million.