Tanweer Infrastructure to buy Sembcorp Energy India Ltd

According to the company, it would seek shareholder approval at the extraordinary general meeting in November and around six months after the EGM, the transfer of SEIL is expected to be completed.

2 min read . Updated: 06 Sep 2022, 01:31 AM IST

SEIL operates two supercritical coal-fired plants with a total capacity of 2.6 gigawatts

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NEW DELHI : Sngapore-based Sembcorp Industries on Monday said it would sell Sembcorp Energy India Ltd (SEIL) to Tanweer Infrastructure Pte Ltd for ₹11,700 crore.

Tanweer Infrastructure is indirectly owned by a consortium led by Oman Investment Corp. in partnership with the Ministry of Defence Pension Fund, Oman, and Dar Investment SPC.

In a statement, Sembcorp Industries said its wholly owned subsidiary Sembcorp Utilities has entered into a share purchase agreement to sell 100% of the shares of Sembcorp Energy India. The company operates two supercritical coal-fired plants with a total capacity of 2.6GW. Sembcorp said Tanweer Infrastructure would settle the final amount through a deferred payment note provided by Sembcorp Utilities.

Speaking to the media after the announcement, Wong Kim Yin, group president and chief executive of Sembcorp, said the transaction does not mean the company is exiting India. Instead, it would free up capacities and create opportunities for accelerated investments in the renewable energy sector in India.

Noting that the company has emerged as a major wind generation player in India, the chief executive said that the company is also in the process of having a strong solar portfolio and also looking at other areas such as round-the-clock, green hydrogen and energy storage going ahead.

According to the company, it would seek shareholder approval at the extraordinary general meeting in November and around six months after the EGM, the transfer of SEIL is expected to be completed. In its statement, the company said the proposed sale would accelerate the transition of Sembcorp’s portfolio toward green energy.

Upon completion of the sale, 51% of Sembcorp’s energy capacity will be renewable energy, up from 43%. Sembcorp will have an energy portfolio of 14GW, with 7.1GW of renewable energy capacity comprising solar, wind and energy storage globally.

Further, it will continue to support SEIL’s operational excellence and initiatives to reduce its greenhouse gas emissions intensity through a technical service agreement and provision of a financial incentive that rewards reduction in emissions intensity.

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