Sembcorp signs agreement to buy Vector Green Energy
NEW DELHI: Sembcorp Green Infra Ltd (SGIL) has signed an agreement to buy Vector Green Energy Pvt Ltd from Global Infrastructure Partners’ India Infrastructure Fund II for an equity value of S$474 million ($345 million).
The transaction will help the subsidiary add 583 MW renewable assets to its India portfolio, according to Singapore’s Sembcorp Industries Ltd.
“Completion of acquisition will bring the group’ s renewable energy capacity to 8.5GW, closer to its 10GW 2025 target of gross installed renewable capacity,” Sembcorp said on Sunday. “Sembcorp’s gross renewable energy portfolio installed and under development will be at 3GW in India,” it said.
On 10 November, Mint first reported that the deal has been finalized. On 13 August, an earlier Mint report said Sembcorp and Torrent Power Ltd were in the race to acquire Vector Green.
Standard Chartered ran the sale process. The Singapore Exchange-listed company has 1.9 GW wind energy capacity in
India, through SGIL.
In September, it announced plans to sell Sembcorp Energy India Ltd, which operates two coal-fuelled power projects of 2.6GW to Tanweer Infrastructure Pte Ltd for ₹11,700 crore. Sembcorp has an energy portfolio of 16.7GW, of which 7.1 GW is renewable energy comprising wind, solar and energy storage projects. “The deal will be funded through internal cash resources and external borrowings,” it 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,” it said. “Including Vector Green, Sembcorp’s gross renewables portfolio installed and under development in India will total 3GW, comprising 1GW of solar assets and 2GW of wind assets.”