Sembcorp Industries announces purchase agreement with Tanweer Infrastructure. The agreement provides for the sale of 100% of the shares of Sembcorp Energy India Limited (SEIL).
The sale is worth $2.1 billion and will position Tanweer as the sole shareholder of SEIL. Tanweer will settle through a deferred payment note provided by Sembcorp Utilities.
Sembcorp diversifies its portfolio
This sale is in line with Sembcorp’s objectives to make an energy transition within the company. In this sense, the transaction accelerates the transformation of its portfolio.
In addition, the sale of SEIL will reduce Sembcorp’s greenhouse gas emissions. This would allow the company to reach its emissions intensity reduction target more quickly. In addition, once the sale is completed, 51% of its capacity will be renewable energy.
As a result, of the 14 GW of capacity in its portfolio, Sembcorp will have 7.1 GW of capacity from renewable energy. These include solar, wind and storage.
In this regard, Wong Kim Yin, president of Sembcorp Group, says:
“The sale of SEIL accelerates the transformation of Sembcorp’s portfolio from brown to green, while protecting the interests of all stakeholders.”
Tanweer Infrastructure provides electricity supply
Tanweer Infrastructure is one of the largest independent power producers in India. To date, the company operates two coal-fired power plants with a total capacity of 2.6 GW. It is also indirectly owned by Oman Investment Corporation (OIC), a private investment company.
OIC has a long history of working with Sembcorp. In fact, both companies developed and operated the Salalah power plant. In this sense, the acquisition by Tanweer contributes to the trust between OIC and Sembcorp.
Meanwhile, Kalat Al Bulooshi, CEO of OIC, speaks on behalf of Tanweer Infrastructure. Thus, he affirms his enthusiasm for the acquisition of an asset that he considers to be of high quality. He also adds how important the supply of electricity is to Tanweer’s customers. This while emphasizing the current context of energy crisis:
“We are committed to providing electricity to our customers in a continuous and efficient manner and to working with our team of committed employees at the plant, our stakeholders such as electric distribution customers and the local community, to achieve their goals. The availability of electricity for households and industries is vitally important in today’s world of energy uncertainties.”
