Sembcorp signs deal to acquire rest of SEIL it doesn’t already own

Electricity advertisement for Sembcorp Industries. Note: Photo taken pre-CovidElectricity advertisement for Sembcorp Industries. Note: Photo taken pre-Covid

Sembcorp Industries’ wholly owned subsidiary Sembcorp Utilities has signed an agreement to acquire the 5.95 percent of Sembcorp Energy India Ltd. (SEIL) it didn’t already own from its local partner Gayatri Energy Ventures, the utilities operator said in a filing to SGX Friday.

“This acquisition will give Sembcorp full flexibility to evaluate and pursue an exciting range of growth opportunities in the renewables segment, while at the same time seeking the right equity window to list our India business or to pursue other capital recycling options,” Neil McGregor, group president and CEO of Sembcorp Industries, said in the statement.

Vipul Tuli, managing director and country head of Sembcorp India, added that the acquisition reaffirmed the company’s long-term commitment to India.

“This transaction will allow us to drive faster growth and technological innovation in our wind and solar investments while leveraging our baseload assets, enabling us to grow as a reliable provider of clean and low cost power to support India’s growing energy needs,” Tuli said in the statement.

The deal is expected to be completed by year-end, subject to approval of shareholders of Gayatri Projects, which owns Gayatri Energy Ventures, the filing said.