Sembcorp Industries (Sembcorp) and its wholly-owned subsidiary, Sembcorp Utilities, has signed a sale and purchase agreement with Engie Global Developments B.V. (Engie), to acquire its 30% interest in Senoko Energy.
The proposed acquisition is set to be funded through Sembcorp’s internal cash resources and, or external borrowings, according to a release by the group dated Sept 17.
Senoko Energy is a major supplier of electricity in Singapore, and is currently held through Engie’s wholly-owned subsidiary, TWMB Holdings B.V.
Sembcorp says that the acquisition is complementary to its current portfolio of energy assets, and will enhance its capability to support Singapore’s energy transition while providing energy security and resilience.
The proposed acquisition is subject to conditions precedent including specific regulatory approvals from the Energy Market Authority of Singapore and the pre-emption rights of the other shareholders of Senoko Energy.
In view of this, the group adds that the salient terms of the proposed acquisition will be announced on its completion, which is expected to be in the fourth quarter of 2024.
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The group says that the proposed acquisition is in the ordinary course of business and, if completed, is expected to be “accretive” to the earnings of Sembcorp. It is also expected to not have a material impact on the net tangible assets per share of Sembcorp for the financial year ending Dec 31.
Shares in Sembcorp closed 0.6 cents lower, or down 1.17%, at $5.19 on Sept 17.
