Singapore-based Sembcorp Industries on Wednesday said it has signed an agreement to acquire the remaining near 6 per cent stake of its local partner Gayatri Energy Venture Pte Ltd in the Indian arm, Sembcrop Energy India Ltd (SEIL), for Rs 406 crore.
Sembcorp’s India energy arm, SEIL is a leading independent power producer in the country focused on growing a clean energy portfolio.
At present, SEIL has a portfolio of thermal and renewable energy assets of more than 4,300 MW.
The purchase price of about Rs 406 crore is in cash, and based on discounted cash flows and relevant transaction multiples.
The acquisition will be funded through a mix of internal funds and borrowings.
The proposed acquisition will allow Sembcorp to have the flexibility as sole owner to evaluate and pursue a full range of growth opportunities in the renewables segment, while at the same time seeking the right equity window to list its India business or to pursue other capital recycling options.
The acquisition is expected to be completed by end of the year, subject to the satisfaction of certain conditions precedent, including shareholders’ approval of GPL.
This year, SEIL has commissioned 357 MW for the Solar Energy Corporation of India (SECI) 2 and SECI 3 wind power projects in India, bringing total commissioned capacity for SECI wind power projects to 607 MW out of 800 MW.
This is the largest operational generating capacity among SECI wind auctions, reflecting the strength of SEIL’s capabilities.
This a Syndicate News-Feed; edited by Clean-Future Team