Singapore-based integrated energy player Sembcorp has signed an agreement to acquire the remaining 5.95% stake of its local partner Gayatri Energy Venture in the Indian arm, Sembcorp Energy India Ltd (SEIL). The acquisition—priced at Rs 4060 million—will be funded through a mix of internal funds and borrowings.
“Following the completion of the proposed acquisition, Sembcorp will become the sole owner of SEIL”—read the company statement.
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—according to the company statement.
The move follows Sembcorp’s July announcement to infuse about Rs 5169 million in SEIL against issuance of 275 million new equity shares.
The equity injection—to support the growth of India renewable energy business—took the Singapore based promoter’s collective stake in SEIL from 93.73% to 94.05%.
SEIL—formerly Thermal Powertech Corporation India—is a leading independent power producer in India focused on growing a clean energy portfolio. At present, it has a diversified portfolio of thermal and renewable energy assets of more than 4,300 MW. Its solar assets are located in the states of Rajasthan and Gujarat.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.