Mumbai: Singapore-based Sembcorp Industries today said its wholly-owned subsidiary Sembcorp Utilities has acquired a 60 per cent stake in Green Infra, a renewable energy company in India with a wind and solar portfolio.
“Sembcorp signed a shareholders agreement and a share purchase agreement with IDFC Private Equity Fund II and IDFC Private Equity Fund III, to invest in a 60 per cent stake in Green Infra for Rs 10.6 billion. The investment will be held through Sembcorp Renewables, a wholly-owned subsidiary of Sembcorp Utilities,” the company said in a statement.
IDFC Private Equity Fund III, which is managed by IDFC Alternatives, will continue to hold the remaining 40 per cent stake in Green Infra.
This acquisition marks Sembcorp's entry into India's renewable energy market, and is a major step in the company's strategy to grow its renewable energy business, it said.
“This acquisition will provide Sembcorp with a platform to grow our renewable energy business. Green Infra's strong capabilities and experienced team will help to accelerate our growth in the renewable energy sector not only in India, but globally.
“Meanwhile, with investments in both thermal and renewable energy, Sembcorp is well-positioned for growth in the energy sector with a balanced portfolio of energy assets,” Sembcorp Group President and CEO Tang Kin Fei said.
The company said Green Infra adds a sizable 516-megawatt operating asset portfolio.
“It also holds assets under development that will bring its total installed power capacity to 700 megawatts by 2015. Comprising 665 megawatts of wind and 35 megawatts of solar assets in operation and under development, and located in six states in the southern, western and central regions of India, Green Infra's portfolio will almost triple Sembcorp's current renewable energy generation capacity globally to over 1,000 megawatts,” the company said.
The acquisition will also provide Sembcorp with solar power capabilities, and expand its renewable energy portfolio beyond wind, biomass and energy-from-waste.