Sembcorp Buys Vector Green Adding 583MW Of Renewables In India

Sembcorp Buys Vector Green Adding 583MW Of Renewables In India
Sembcorp Industries has signed an agreement to acquire Vector Green Energy for a base equity consideration of around $345 million.

Sembcorp Industries has signed an agreement to acquire Vector Green Energy for a base equity consideration of around $345 million.

Sembcorp made the acquisitions via its wholly-owned subsidiary Sembcorp Green Infra which bought Vector Green from India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India.

Vector Green is an independent power producer with renewable power generation assets spread across 13 Indian states. The portfolio includes 495MW of solar capacity and 24MW of wind capacity in operation, with 64MW of solar projects under development. 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.

"Sembcorp remains committed to growing its renewables portfolio in India, one of the fastest growing renewables markets in the world. This acquisition is aligned with the Group’s brown-to-green transformation strategy. With the completion of this acquisition, Sembcorp's gross renewable energy capacity will increase to 8.5GW, pushing us closer towards our 2025 target of 10GW," Wong Kim Yin, Group President and CEO of Sembcorp Industries, said.

“This acquisition brings the significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio. It also broadens and deepens our renewable energy capabilities and presence across states in India, and positions us well for further green growth in the country,” Vipul Tuli, CEO of South Asia at Sembcorp Industries, added.

The acquisition will be funded through internal cash resources and external borrowings. 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. For more information on Vector Green’s portfolio, please see the Appendix.

This acquisition is in the ordinary course of business of Sembcorp Industries and is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2022.

To contact the author, email bojan.lepic@rigzone.com


What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network.

The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.


Most Popular Articles