By Yongchang Chin
SembCorp Industries will acquire 658 megawatts of wind and solar assets in China, which will allow it to benefit from the world’s largest renewable energy market, the company said on Friday.
Chinese unit of SembCorp Industries to acquire 98% stake in portfolio of operational wind and solar assets from 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 will provide it with a scalable renewable platform to drive growth in China. The assets are located in high energy demand locations such as Hebei, Henan and Shandong, and are eligible for fixed feed-in tariffs under China’s renewable energy policies.
âThe acquisition of this renewable energy growth platform in China is an important step towards our goal of having 10 GW of gross installed renewable energy capacity by 2025,â CEO Wong Kim Yin said in a statement.
SembCorp’s investment will be funded by a combination 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 the acquisition is not expected to have a significant 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]