Singapore-based Sembcorp Industries Limited (Sembcorp) has acquired a 35 per cent stake in China-based SDIC New Energy and it’s 1.9-GW portfolio of wind and solar facilities in China. The acquisition amount stands at approximately USD 235.3 million. SDIC Power will control the remaining 65 per cent stake in SDIC New Energy.
Sembcorp will finance the investment with a mix of internal cash and external borrowings. The acquisition is in line with the company’s goal of having 10 GW of gross installed renewables capacity by 2025. The transaction is pending regulatory clearance and the signing of a joint venture (JV) agreement with SDIC Power. The transaction is expected to be finalised in the first half of 2022.
SDIC New Energy owns a portfolio of 30 wind and solar assets across seven provincial regions in China. The plants were brought online between 2009 and 2020 and have individual capacities of 9 MW-300 MW.