Sembcorp Industries U96 has announced its signature of two separate agreements to acquire a total of 428 megawatts (MW) of wind assets in China and India on Nov 27.
Sembcorp’s wholly-owned subsidiary, Sembcorp Energy (Shanghai) Holding has signed an agreement with Envision Energy to acquire 100% of the share capital in Qinzhou Yuanneng Wind Power for an equity consideration of approximately $130 million. 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, an independent power producer in Tamil Nadu, India.
Under the agreement, GIWEL will acquire 100% of the share capital in two special purpose vehicles (SPVs) for an equity consideration of approximately $70 million from Leap Green Energy. 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 25 gigawatts (GW) of gross installed renewables capacity. This includes the proposed acquisition of 245MW of renewables assets in Vietnam announced on Nov 10.
Upon completion of these acquisitions, Sembcorp’s gross renewables capacity will reach 12.6GW globally.
See also: CapitaLand India Trust commissions 21MW captive solar plant in Tamil Nadu
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.
Sembcorp says the acquisitions will not have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending Dec 31.
Shares in Sembcorp closed 1 cent or 0.2% down at $5.12 on Nov 27.
