Sembcorp Industries said that it has picked up 100 per cent stake in by Global Infrastructure Partners (GIP) India-backed Vector Green Energy Pvt ltd for a base equity consideration of approximately Rs 2,780 crore (approximately $474 million).
Vector Green, an independent renewable power producer has a total asset portfolio of 583 megawatt (Mw) spread across 13 states.
The portfolio includes 495 Mw of solar capacity and 24 Mw of wind capacity in operation, with 64 Mw of solar projects under development. With this acquisition, Sembcorp’s gross renewables portfolio installed and under development in India will touch 3 gigawatt, comprising 1GW of solar assets and 2GW of wind assets, said the company.
Sembcorp said the acquisition will be funded through internal cash resources and external borrowings.
Wong Kim Yin, Group President & CEO, Sembcorp Industries, said with the completion of this acquisition, Sembcorp’s gross renewable energy capacity will increase to 8.5 Gw globally, pushing it closer towards its 2025 target of reaching 10 Gw.