Mon, Sep 25, 2017

Singapore-based Sembcorp Industries would acquire IDFC’s stake in Sembcorp Green Infra (SGI) in a Rs 1,410.2-crore deal, or for approximately $301 million. Its wholly-owned subsidiary, Sembcorp Utilities, has entered into an agreement to acquire IDFC Private Equity Fund III’s remaining 28 percent stake in SGI. With this, Sembcorp would become the sole owner of SGI.

The company said the following,

"Pursuant to the prevailing shareholders’ agreement between the parties, Sembcorp Utilities has exercised its contractual right to acquire IDFC’s remaining shares in SGI. The consideration for the acquisition was agreed between the parties based on, amongst others, comparable market valuations, and an assessment of SGI’s assets and business prospects."

This is the largest exit across all funds managed by IDFC Alternatives, generating a 3.2x return for IDFC PE Fund III. SGI is one of the largest renewable energy players, present across seven states in India. It was awarded 250 MW in India’s first national wind power tender earlier this year. SGI has close to 1,200 MW of the wind and solar power capacity in operation and under development.

The acquisition would be funded through a mix of internal funds and borrowings, and payments would be settled in Indian rupees. The completion of the deal is expected to take place in the first quarter of 2018.

Sembcorp has operations across five continents worldwide. With facilities of about 11,000 MW of gross power capacity and close to 9 million cubic metres of water per day in operation and under development, Sembcorp also provides water solutions to industrial and municipal customers. It is one of the major players in the field of marine and offshore engineering. It is also an established brand name in urban development.