SembCorp Industries to Acquire Wind, Solar Energy Assets in China – MarketWatch
By Yongchang Chin
SembCorp Industries will acquire 658 megawatts of wind- and solar-energy assets in China, which will position it to benefit from the world’s largest renewable-energy market, the company said Friday.
A Chinese unit of SembCorp Industries will acquire a 98% interest in a portfolio of operational wind and solar assets from a Chinese private-equity infrastructure fund, CGN Capital Partners Infrastructure Fund III, for 3.3 billion yuan ($516.4 million).
The company said the portfolio of wind and solar assets would provide it with a scalable renewable platform to drive further growth in China. The assets are in places of high energy demand such as Hebei, Henan and Shandong, and are eligible for fixed feed-in tariffs under China’s renewable energy policies.
“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,” CEO Wong Kim Yin said in a statement.
SembCorp’s investment will be funded through a mix of internal cash resources and borrowings, and it expects to complete the acquisition in the first half of 2022. The purchase is subject to regulatory approvals.
The company said that the acquisition isn’t expected to have a material impact on its earnings per share and net asset value per share of SembCorp Industries for the year.
Write to Yongchang Chin at [email protected]