Singapore-based utilities company Sembcorp has agreed to acquire the stake owned by IDFC Private Equity Fund III (IDFC) in Sembcorp Green Infra (SGI) for INR1410.2 crores (S$221m).
With the stake acquisition, Sembcrop will become the sole owner of SGI. As per the company, after shareholders agreement between the two parties, it used its contractual right to acquire IDFC’s stake in SGI.
Sembcorp Green Infra is considered to be one of the largest renewable energy players in India. The company claims its to have presence across seven states in the country.
Presently, the company has a portfolio of about 1.2GW of renewable energy capacities, including wind and solar projects which are in operation and under development.
The deal is expected to be closed in the first quarter of 2018 and Sembcorp plans to close the deal through a mix of internal funds and borrowings.
Sembcorp Industries Group president and CEO Neil McGregor 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.
“Strengthening our investment in renewables will also help us stay abreast of advances in greener power generation, and will enable us to deliver electricity to our customers in an increasingly sustainable manner.”
In April this year, the company was awarded a 250MW in a wind power tender, which is considered to be one of India’s first national tender. The tender was conducted by Solar Energy Corp of India, an entity under India’s Ministry of New and Renewable Energy.
Electricity generated from the project, which will be located in the Southern state of Tamil Nadu, will be sold to Power Trading Corporation under a 25-year long term power purchase agreement.
Image: Sembcorp acquires complete stake in its Indian subsidiary Sembcorp Green Infra. Photo: Courtesy of Sembcorp Industries Ltd.