Sembcorp Industries has announced that it will acquire 795 megawatts (MW) of solar assets in China via its 49% owned joint venture, Beijing Energy Sembcorp.
This transaction will be with BEI Energy Development (Beijing) and will see Sembcorp pay an initial consideration of RMB15 million ($2.89 million), as well as a future capital injection of up to RMB1.14 billion.
The solar assets are located in the south of Hebei Province, one of China’s main energy demand centres, and these assets are contracted to the State Grid Corporation of China, a Chinese state-owned electric utility and grid operator.
With the completion of this acquisition, Sembcorp's global renewables portfolio will reach 7.9 gigawatts (GW), close to its 2025 target of 10GW of gross installed renewables capacity.
Sembcorp’s investment will be funded through a mix of internal cash resources and external borrowings, and the company expects to complete this acquisition in the first quarter of 2023, subject to conditions precedent, including regulatory approvals.
Sembcorp adds that this acquisition is expected to be accretive to earnings upon completion and has no impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31.
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Shares of Sembcorp Industries closed at $3.04, two cents higher or 0.66% higher than its previous close.
