Sembcorp's JV to acquire 795 MW of solar projects in China
Solar modules in China. Featured Image: zhu difeng/Shutterstock.com
Singapore-based group Sembcorp Industries Ltd (SGX:U96) said on Friday that it will acquire three solar projects with a combined capacity of 795 MW in China through its 49%-owned joint venture (JV).
The JV, Beijing Energy Sembcorp (Hainan) International Renewables, entered into share purchase agreements with BEI Energy Development (Beijing) Co Ltd to fully acquire the projects for an initial equity consideration of around CNY 15 million (USD 2.1m/EUR 2.1m) and future capital injection of up to CNY 1.148 billion.
The acquisition is subject to regulatory approvals and other conditions. Sembcorp expects the transaction to be finalised in the first quarter of 2023.
The solar projects are located in the south of Hebei province, one of China’s main energy demand centres, Sembcorp said. The assets are contracted to Chinese utility State Grid Corporation of China, according to the announcement.
Beijing Energy Sembcorp (Hainan) is Sembcorp’s JV with Beijing Energy International Investment Limited, a renewables-focused wholly-owned subsidiary of Beijing Energy International Holding Co Ltd (HKG:0686).
Once the acquisition wraps up, Sembcorp will have some 7.9 GW in its global renewables portfolio. The company targets 10 GW of gross installed renewables capacity in 2025, it said.
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