Singaporean energy and urban development group Sembcorp Industries Ltd’s (SGX:U96) renewables arm has agreed to acquire Vector Green Energy Private Ltd, an India-based renewable power producer with a total wind and solar portfolio of 583 MW.
Sembcorp will pay about INR 27.8 billion (USD 341.3m/EUR 328.7m) to take control of the business.
The acquisition will boost Sembcorp’s gross renewables portfolio of installed and under development assets in India to a total of 3 GW, including 1 GW of solar and 2 GW of wind assets, the buyer said in a press release earlier this week.
Vector Green is an independent power producer with a portfolio comprising 495 MW of solar plants and 24 MW of wind capacity in operation, plus 64 MW of solar projects under development. Its assets are spread across 13 states in the country.
Sembcorp’s wholly-owned subsidiary Sembcorp Green Infra Limited will buy Vector Green from a fund managed by the Indian unit of US investment firm Global Infrastructure Partners (GIP). The purchase will be funded through available cash and borrowings.
The acquisition of the Indian firm, set to close by the first quarter of 2023, will bring Sembcorp closer to achieving its goal of 10 GW of gross installed renewable capacity by 2025. Upon completion of the deal, the Singaporean firm’s portfolio will stand at 8.5 GW.
Sembcorp Green Infra earlier in November agreed to acquire three solar projects in China with a combined capacity of 795 MW.
(INR 100 = USD 1.227/EUR 1.182)
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