Singapore-based utilities major Sembcorp Industries on Monday said it would sell its entire stake in Sembcorp Energy India Ltd (SEIL) to Tanweer Infrastructure Pte for $1.47 billion (Rs 117 billion) in a move to reduce its greenhouse gas emissions.
Tanweer Infrastructure is indirectly owned by a consortium led by Oman Investment Corporation S.A.O.C. (OIC) in partnership with the Ministry of Defence Pension Fund, Oman, one of Oman’s largest pension funds with significant investments across power and infrastructure, and Dar Investment SPC.
The sale of SEIL will bring about a reduction of Sembcorp’s greenhouse gas emissions intensity and enable it to achieve its 2025 target ahead of time.
Sembcorp Energy, one of the largest power producers in India, operates two supercritical coal-fired power plants totaling 2,640 MW, servicing nearly 2.5 million households. Upon completion of the deal, it is expected that Tanweer Infrastructure will become the sole shareholder of the unit.
Following the deal, renewable energy will make up 51% of Sembcorp’s energy capacity, up from 43%. Sembcorp will have an energy portfolio of 14 GW with 7.1 GW of renewable energy capacity comprising solar, wind and energy storage globally.
On a pro forma basis, Sembcorp’s share of net profit from its sustainable solutions portfolio for the first half of 2022 will increase from 25% to 31%, the company said.
OIC and Sembcorp, have jointly developed and operated the $1-billion Salalah Independent Power and Water Plant in Oman since 2009.
Last month, Mint reported that electricity producer Torrent Power and Sembcorp Industries Ltd. were in the race to buy clean energy platform Vector Green Energy, which is owned by funds managed by the Indian subsidiary of Global Infrastructure Partners.