Sembcorp Utilities has signed a deal to buy IDFC Private Equity Fund III’s (IDFC) remaining stake in Sembcorp Green Infra (SGI) for INR14.1bn ($221m).
The deal follows an existing shareholders’ agreement between the two companies that involved a contractual right for Sembcorp to purchase the shares.
The acquisition is expected to be closed by Q1, 2018.
Sembcorp IndustriesGroup president and CEO Neil McGregor said: “Buying IDFC’s stake in SGI reaffirms Sembcorp’s commitment to a long-term presence in India.
“The deal will allow us to drive SGI’s growth as the 100% owner, and increase our investment in a wind and solar generation portfolio that strongly complements our thermal power assets in the country.
“Strengthening our investment in renewables will also help us stay abreast of advances in greener power generation, and will enable us to deliver electricity to our customers in an increasingly sustainable manner.”
SGI currently has around 1,200MW of windpower and solarpower capacity in operation and under development. The company first entered these markets in 2015, when it announced its intention to buy a 60% stake in IDFC Alternatives-backed renewable energy firm Green Infra for INR10.6bn ($165m).