Sembcorp Industries has completed the acquisition of a 45.3% interest in Hunan Xingling New Energy Co (Xingling New Energy) in China.
The acquisition, which was announced on Nov 17, was made for a total equity consideration of RMB1.06 billion ($204 million).
The acquisition was made by Sembcorp’s wholly-owned subsidiary Sembcorp Energy (Shanghai) Holding.
Xingling New Energy currently owns 301MW of installed wind power assets in China’s Hunan Province.
Wuling Power Co. Limited, an affiliated company of State Power Investment Corporation Limited, owns the remaining 54.7% interest in Xingling New Energy.
As part of the full transaction, Xingling New Energy will acquire another 591MW of wind and solar assets (installed and under development) from Wuling Power.
This will bring Xingling New Energy’s renewables portfolio in Hunan and Guizhou to 892MW.
The transaction is expected to be completed in the 1HFY2023.
Upon completion of this transaction, Sembcorp will reach a new milestone of 9.4GW of gross renewables capacity globally.
Shares in Sembcorp Industries closed flat at $3.31 on Dec 16.