Singapore-based Sembcorp Industries on November 13 announced that its wholly-owned subsidiary Sembcorp Green Infra has inked pact to acquire Vector Green Energy for Rs 2,780 crore to expand its renewable energy footprint in India. The acquisition will be funded through internal cash resources and external borrowings. The completion of the acquisition is subject to customary closing conditions and is expected by the first quarter of 2023, it said.
The acquisition will bring Sembcorp's gross renewable energy capacity to 8.5 GW, closer to its 2025 target of 10 GW of gross installed renewable capacity, it said in a press statement.
On Sep 22, Moneycontrol was the first to report that Sembcorp had emerged as the lead contender for the transaction.
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"Sembcorp Industries (Sembcorp) announces that its wholly-owned subsidiary, Sembcorp Green Infra Limited, has signed an agreement with India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India Pvt Ltd, to acquire 100% interest in Vector Green Energy Private Limited (Vector Green) for a base equity consideration2 of approximately INR27.8 billion approximately S$474 million)," the statement said.
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, the statement added.
Wong Kim Yin, Group President & CEO, Sembcorp Industries, said, "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 8.5GW4, pushing us closer towards our 2025 target of 10GW."
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