NEW DELHI: Singapore-based Sembcorp on Wednesday said it has signed an agreement to acquiring the 6% stake of local partner Gayatri Energy Venture Pte Ltd in its Indian arm, Sembcrop Energy India Ltd (SEIL), for Rs 406 crore.

The cash deal is based on discounted cash flows and relevant transaction multiples, a company statement said. “The proposed acquisition will allow Sembcorp to have the flexibility as a sole owner to evaluate and pursue a full range of growth opportunities in the renewables segment, while at the same time seeking the right equity window to list its India business or to pursue other capital recycling options,” the company said in a statement.

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

SEIL is a leading independent power producer in the country focused on growing a clean energy portfolio. SEIL has commissioned 357 MW for SECI (Solar Energy Corporation of India), the state-owned entity that is implementing the government’s solar plan.

SEIL has a portfolio of thermal and renewable energy assets of over 4,300 MW capacity. “There is also potential future earn-outs for GEVPL on the achievement of certain milestones by SEIL. The acquisition will be funded through a mix of internal funds and borrowings,” it said.

News Source: The Times Of India 

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