Friday, 01 September 2017 17:07

Sembcorp acquires IDFC PE’s remaining stake in Indian green energy arm for Rs 1400 cr

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Singapore-based Sembcorp has acquired IDFC PE’s remaining stake in its Indian green energy arm Sembcorp Green Infra (SGI) for Rs. 1400 crore, the company said in a filing to the Singapore Stock Exchange.

Sembcorp had first acquired a 60% stake in IDFC PE-owned Green Infra in February 2015. It gradually increased its stake in the company in tranches to around 72%.

IDFC had a residual holding amounting to 28% in SGI that has been sold in this transaction.

Sembcorp, an owner and operator of energy and water assets generates 11,000 MW of power through its various plants and treats 9 million cubic meters of water and waste water each day. 
The company’s operations span 15 countries in five continents. It owns 11,000 hectares of land in Vietnam, China and Indonesia alone. India is one of Sembcorp’s ‘key markets’ according to details provided in its annual report for 2016.

The Indian renewable energy arm has 1200 MW of the wind and solar power projects in various stages of development.

Neil McGregor, Group President, Sembcorp Industries, said “Buying IDFC’s stake in SGI reaffirms Sembcorp’s commitment to a long-term presence in India. The deal will allow us to drive SGI’s growth as the 100% owner, and increase our investment in a wind and solar generation portfolio that strongly complements our thermal power assets in the country”.

Sembcorp has already invested $3 billion to set up two operational coal-fired power plants in Andhra Pradesh with a capacity to generate 2640 MW of power. The power plants are housed in the Sembcorp Gayatri Power complex at Krishnapatnam in the Nellore district.

The acquisition of the remaining stake in SGI will be funded through a mix of internal funds and borrowings, the company said in its statement.

The renewable energy sector has received a foreign direct investment of nearly $9 billion since 2000 according to Ministry of Commerce estimates.

The Government has laid out a plan to add 175,000 MW of renewable energy by 2022.

Additional Info

  • News Section: Corporate
  • Month: September
  • Year: 2017
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