Sembcorp Industries has finalised an agreement to acquire Alinta Energy, strengthening its position in the Australian energy sector. The transaction, valued at AU$6.5bn ($4.3bn) including debt, involves the full assumption of shareholder loans and equity in the holding companies controlling Alinta. This acquisition grants Sembcorp an immediate and strategic presence in one of the Asia-Pacific region’s most active power markets.
A structure based on bridge financing
The deal’s estimated AU$5.6bn cash component will be financed through short-term bridge loans and working capital facilities. Sembcorp stated the transaction was structured to ensure seamless operational continuity. It also includes the full acquisition of shares and shareholder loans held by Chow Tai Fook Enterprises and Pioneer Sail Singapore, the outgoing owners of Alinta.
A key player in Australia’s energy sector
Alinta Energy is one of Australia’s largest integrated energy providers, serving nearly 1.1 million customers. Its current portfolio includes 3.4 gigawatts of installed and contracted capacity across coal, natural gas, wind, and solar. Through the acquisition, Sembcorp gains immediate access to operational assets and an established customer base in a rapidly evolving market.
Significant future growth pipeline
In addition to operating assets, Alinta controls a 10.4-gigawatt development pipeline including renewable energy projects, battery storage systems, firming assets, and pumped-hydro facilities. These developments provide a strategic foundation for Sembcorp’s expansion in capacity development and demand management.
The acquisition aligns with Sembcorp’s broader international strategy to expand into markets with substantial energy growth potential. The company aims to diversify its revenue streams and optimise its global asset portfolio through this transaction.
