Sembcorp To Buy Vector Green Energy For Rs 2,780 Crore
The deal is expected to be closed by first quarter of 2023.
Sembcorp Industries Ltd.'s wholly owned subsidiary, Sembcorp Green Infra Ltd., has entered into an agreement to buy Vector Green Energy Pvt. for Rs 2,780 crore or S$474 million from India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India Pvt.
Vector Green, an independent power producer has renewable power portfolio of 519 MW that includes 495 MW of solar capacity and 25 MW of wind capacity. Another 64 MW of solar projects are under construction.
With this acquisition, Sembcorp’s gross renewable portfolio in India -- including the under-development projects -- will increase to 3 GW. The portfolio comprises of 1 GW of solar assets and 2 GW of wind assets, the company said in a statement.
The acquisition will be funded through internal cash resources and external borrowings, the company said.
Completion of the acquisition is subject to customary closing conditions and is expected by the first quarter of 2023.
“The acquisition is expected to be accretive to earnings upon completion,” the company said.
"Sembcorp remains committed to growing its renewables portfolio in India, one of the fastest growing renewables markets in the world," said Wong Kim Yin, group president and chief executive officer at Sembcorp Industries.
This acquisition is aligned with the group’s brown to green transformation strategy.
With the completion of this acquisition, Sembcorp's gross renewable energy capacity will increase to 8.5 GW (globally), pushing them closer towards the 2025 target of 10 GW.
“This acquisition brings significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio,” said Vipul Tuli, chief executive officer of South Asia, Sembcorp Industries.
Tuli added the deal will "broaden Sembcorp’s renewable energy capabilities and presence across states in India, and will position them for further green growth in the country."