Sembcorp Industries today said it has entered into an agreement with IDFC Private Equity Fund III to acquire its remaining stake in the company’s renewable energy business for Rs 1,410.2 crore, thus becoming a sole owner of Sembcorp Green Infra (SGI).
The company, wholly-owned subsidiary Sembcorp Utilities has acquired IDFC’s remaining stake in SGI for Rs 1,410.2 crore, thus becoming the sole owner of its renewable energy division, Sembcorp said in a statement issued here.
“Buying IDFC’s stake in SGI reaffirms our commitment to a long-term presence in India. The deal will allow us to drive SGI’s growth as the 100 percent owner, and increase our investment in a wind and solar generation portfolio that strongly complements our thermal power assets in the country,” Sembcorp Industries Group President and CEO Neil McGregor said.
With a total capacity of 1,200 MW of solar and wind power in operation and under development, SGI has a presence across seven states in India.
It was awarded 250 MW in India’s first national wind power tender earlier this year.
“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,” he added.
As at 2016 end, the net asset value and net tangible asset value at SGI level were SGD 427.6 million and SGD 426.9 million, respectively.
The net profit at SGI level for the 12-month financial period ended December 31, 2016 was around SGD 39.0 million. “This acquisition will be funded through a mix of internal funds and borrowings, and payment will be settled in Indian rupees. Completion of the deal is expected to take place in the first quarter of 2018,” the company said.
Source: PTI
