Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), has signed a non-binding term sheet with Gayatri Energy Ventures Pte Ltd (GEVPL), a wholly owned subsidiary of Gayatri Projects Limited, to acquire the remaining 5.95% stake in Sembcorp Energy India Limited (SEIL). Following the completion of the proposed acquisition, Sembcorp will become the sole owner of SEIL.
The purchase price for the shares is approximately ₹406 crore in cash. The acquisition will be funded through a mix of internal funds and borrowings. A press release from Sembcorp Industries said there is also potential for future earn-outs for GEVPL on the achievement of certain milestones by SEIL.
Sembcorp’s India energy arm, SEIL, is a leading independent power producer in the country focused on growing a clean energy portfolio. At present, SEIL diversified portfolio of thermal and renewable energy assets of more than 4,300 MW. Since the beginning of the year, SEIL has commissioned 357 MW for the Solar Energy Corporation of India (SECI) 2 and SECI 3 wind power projects in India, bringing total commissioned capacity for SECI wind power projects to 607 MW out of 800 MW.
“The proposed acquisition will allow Sembcorp to have the flexibility as sole owner to evaluate and pursue a full range of growth opportunities in the renewables segment, while at the same time seeking the right equity window to list its India business or to pursue other capital recycling options,” the press release said. The proposed acquisition is expected to be completed by end of the year.