- Press Releases
December 2 (Renewables Now) - Singapore-based utilities group Sembcorp Industries Ltd (SGX:U96) has agreed to buy a 35% interest in China’s SDIC New Energy and thus get access to its 1.9-GW portfolio of wind and solar parks in China.
Through its subsidiary Sembcorp Energy (Shanghai) Holding Co Ltd, the Singaporean company has signed an equity transfer agreement to buy the stake from an equity fund owned by China’s State Development Investment Corporate Group (SDIC). The acquisition amount stands at roughly CNY 1.5 billion (USD 235.3m/EUR 207.9m).
Following the transaction, SDIC Power (SHA:600886), the power arm of state-controlled SDIC, will hold the remaining 65% of SDIC New Energy.
The target entity owns a portfolio of 30 wind and solar assets across seven provincial regions in China. The plants were brought online between 2009 and 2020 and have individual capacities of 9 MW-300 MW.
Sembcorp will finance the investment with a mix of internal cash and external borrowings. It noted that the deal will back its goal of having 10 GW of gross installed renewables capacity by 2025.
The transaction is pending regulatory clearance and the signing of a joint venture agreement with SDIC Power, and is seen to be finalised in the first half of 2022.
The Singaporean firm expects the acquisition to start adding to its earnings from the first year.
(CNY 1.0 = USD 0.157/EUR 0.139)