Sembcorp acquires 35% of China-owned wind and solar assets

This will contribute to its 10GW gross installed renewable capacity by 2025.

Sembcorp Industries has signed an equity transfer agreement with China state-owned State Development Investment Corporate Group (SDIC)'s Shanghai SDIC Xieli Development Equity Fund Partnership (Xieli Fund).

Through its wholly-owned subsidiary, Sembcorp Energy (Shanghai) Holding, Sembcorp will take over 35% interest in SDIC New Energy for an equity consideration of approximately RMB1.5b (approximately $320m).

SDIC New Energy's portfolio consists of 30 operational wind and solar PV assets with a total gross installed capacity of about 1.9 gigawatts (GW) located across seven provincial regions in China. SDIC Power, the publicly-listed power arm of SDIC, holds the remaining 65% of SDIC New Energy.

CEO Wong Kim Yin 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 with SDIC Power to grow the joint venture together. Along with our recently announced 658MW acquisition, our group expects its renewables portfolio to reach a gross capacity of 6.1GW."

The acquisition was in the ordinary course of business and not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending 31 December 2021.