Sembcorp Industries has entered into an agreement to acquire a 35% interest in 1900MW of operational wind and solar farms in China.
Sembcorp, through its subsidiary Sembcorp Energy (Shanghai), has signed an equity transfer agreement with China’s State Development Investment Corporate Group’s Shanghai SDIC Xieli Development Equity Fund Partnership, to take over its 35% interest in SDIC New Energy for an equity consideration of approximately S$320m (€206m).
SDIC New Energy’s portfolio consists of 30 operational wind and solar PV assets with a total gross installed capacity of about 1.9GW located across seven provincial regions in China.
SDIC Power, the public-listed power arm of SDIC, is the remaining 65% shareholder of SDIC New Energy.
Sembcorp’s investment will be funded through a mix of internal cash resources and external borrowings.
Completion of the acquisition is expected in the first half of 2022, and is subject to customary conditions precedent including regulatory approvals and the signing of a joint venture agreement with SDIC Power.
Wong Kim Yin, group president and CEO of Sembcorp Industries, said: “We are committed to achieving our Group target of 10GW of gross installed renewables capacity by 2025.
“China is an important part of our brown to green transformation plan.
“We are pleased to partner SDIC Power, to grow the joint venture together.
“Along with our recently announced 658MW acquisition, our group renewables portfolio is expected to reach a gross capacity of 6.1GW.”