Sembcorp Industries is acquiring a 98% interest in a portfolio of operating wind and solar photovoltaic assets for RMB3.3 billion ($700 million).
The seller is CGN Capital Partners Infrastructure Fund III, an unlisted private equity infrastructure fund, and its affiliates.
Sembcorp will fund this acquisition via a mix of internal resources and borrowings. It expects to complete the transaction by middle of next year.
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The portfolio of wind and solar assets with a total gross installed capacity of 658MW will provide Sembcorp with a scalable renewable platform to drive further growth in China.
These assets are located across Hebei, Henan and Shandong provinces and are eligible for fixed feed-in tariffs under the China renewable energy policy.
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“The acquisition of this renewables growth platform in China is an important step towards our target to have 10GW of gross installed renewables capacity by 2025,” says group president and CEO Wong Kim Yin.
“We are focused on the execution of our growth strategy across our markets to achieve our brown to green transformation,” he adds.
Alex Tan, CEO China, Sembcorp Industries notes that China is the world’s largest renewables market, and a priority growth market for Sembcorp.
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With this acquisition, Sembcorp’s renewables portfolio in China will double in gross capacity from 725MW to 1,400MW of wind and solar assets.
“This scalable platform will boost our growth in China and support the building of our operational and technical capabilities,” adds Tan.
Photo: One of the assets to be acquired in Hebei province / Sembcorp Industries
