Sembcorp Green Infra Limited (SGIL) is all set to buy a 100 per cent stake in Vector Green Energy by spending Rs 2,780 crore. The subsidiary company of Sembcorp Industries Limited signed a deal with the US private equity firm Global Infrastructure Partners’ India Infrastructure Fund II to acquire Vector Greens.
Both Sembcorpp and Torrent power limited were in the race to buy Vector Green Energy, in the end, Sembcrop emerged as the champion, Mint stated in a report.
"Sembcorp Industries (Sembcorp) announces that its wholly-owned subsidiary, Sembcorp Green Infra Limited, has signed an agreement with India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India Pvt Ltd, to acquire 100% interest in Vector Green Energy Private Limited (Vector Green) for a base equity consideration of approximately Rs 27.8 billion, (approximately S$474 million)," the company said in a statement while disclosing the decision of acquisition.
Advertisement
"Sembcorp remains committed to growing its renewables portfolio in India, one of the fastest growing renewables markets in the world. This acquisition is aligned with the Group's brown-to-green transformation strategy,” Wong Kim Yin, CEO and group president of Sembcorp Industries, said.
The business acquisition will bolster the footprints of Sembcrop in the Indian green energy sector and it will bring Sembcrop’s gross renewable energy to 8.5 GW, closer to the company’s target of 10 GW of gross installed renewable energy capacity, he also added.
Vector Green is known for being an independent power producer in the country. The company’s assets are spread in 13 states and its portfolio includes 495MW of solar capacity and 24MW wind capacity in operation. Additionally, The company is currently developing 64 MW solar projects.
Just one email a week