Sembcorp inks pact to buy out local partner Gayatri Energy's stake in Indian unit

New Delhi: Singapore-based Sembcorp Industries on Friday said it has signed a pact to buy out its local partner Gayatri Energy Ventures Pte Ltd's stake in the Indian arm Sembcrop Energy India Ltd (SEIL) for Rs 406 crore.

The firm had first announced the deal to buy 5.95 per cent stake held by Gayatri Energy on December 4. "Further, to our announcement on December 4, 2019, Sembcorp Industries (Sembcorp) announces that its wholly-owned subsidiary Sembcorp Utilities has signed an agreement today with its local partner, Gayatri Energy Ventures Pte Ltd (GEVPL), a wholly-owned subsidiary of Gayatri Projects Limited (GPL), to acquire the remaining 5.95 per cent stake in SEIL," it said in a statement here.

Sembcorp will now be the sole owner of SEIL.

Sembcorp's India energy arm SEIL, leading independent power producer in the country, is focused on growing a clean energy portfolio. Currently, SEIL has a portfolio of thermal and renewable energy assets of more than 4,300 megawatt.

Neil McGregor, group president and chief executive officer of Sembcorp Industries, said, "Since Sembcorp's entry into the fast-growing Indian energy market in 2010, Gayatri has been a valuable partner in our journey to become an established energy player with a strong track record in delivering commitments. This acquisition will give Sembcorp full flexibility to evaluate and pursue an exciting range of growth opportunities in the renewables segment, while at the same time seeking the right equity window to list our India business or to pursue other capital recycling options."

The acquisition is expected to be completed by the end of the year, subject to the satisfaction of certain conditions precedent, including shareholders' approval of GPL.