Home Consulate OIC-led consortium to acquire Sembcorp’s 2.6GW power plants in India for $1.5bn

OIC-led consortium to acquire Sembcorp’s 2.6GW power plants in India for $1.5bn


Muscat: A consortium led by Oman Investment Corporation (OIC) in partnership with the Oman Ministry of Defense Pension Fund (MODPF) and an Omani family office (collectively, the Tanweer Consortium) announced that it has, through the intermediary of Tanweer Infrastructure Pte. ltd. (Tanweer Infrastructure), entered into a share purchase agreement with Sembcorp Utilities Pte. ltd. (SCU) to acquire 100% of the shares of Sembcorp Energy India Limited (SEIL).

SEIL is one of the largest independent power producers in India, operating two supercritical coal power plants totaling 2.6 GW. SCU is a wholly owned subsidiary of Sembcorp Industries (Sembcorp).

The signing took place in the presence of Anwar Ahmed Muqaibal, Consulate General of the Sultanate of Oman for the Republic of Singapore.

The acquisition of SEIL for an amount of INR 117 billion, or approximately $1.5 billion, will make Tanweer Infrastructure, a company incorporated by the Tanweer consortium, the sole shareholder of SEIL after completion. Tanweer Infrastructure will settle the final consideration via a deferred payment note provided by SCU.
Acquisition to accelerate OIC’s transformation into an international player
This agreement advances OIC’s vision to build an international asset management business headquartered in the Sultanate of Oman.

OIC is a leading Omani private equity investment firm established in 2005 with a strong track record in building, investing and growing businesses. The ICO focuses on investing in energy and infrastructure projects, real estate, logistics, healthcare as well as asset and project management services.

The ICO’s partnership with the MODPF for this acquisition is in line with its plan to work in partnership with Omani pension funds, government institutions and private sector investors to invest in profitable and well-managed business opportunities, in the intention to support the diversification of Oman’s economy and achieve the Sultanate’s National Goals.

Acquisition of a world-class power generation platform from a leading international developer and long-term trusted partner
Sembcorp is a leading provider of energy and urban solutions. Sembcorp and OIC have enjoyed a proven relationship of trust for over a decade, having jointly developed and operated the $1 billion independent Salalah Hydro and Power Plant in Oman since 2009.

To ensure the continuity of the highest standards of reliability, operational efficiency and best practices in the management of SEIL’s supercritical power plants, Sembcorp will continue to provide technical consultancy services to SEIL through a technical services. SEIL’s existing operations team will continue to be employed under the new owner of Tanweer Infrastructure. Tanweer Infrastructure will continue the initiatives underway at SEIL to reduce the intensity of greenhouse gas emissions.

The transaction protects the interests of the stakeholders
SEIL provides critical energy needs to more than 2.5 million households. It has two of India’s largest and most efficient national grid-connected power plants and is a trusted and reliable supplier through ongoing contractual relationships with power distribution companies.

The transaction protects the interests of important stakeholders such as SEIL’s existing power distribution customers and end users, employees, lenders as well as the broader Indian power system.

Wong Kim Yin, Group Chairman and CEO of Sembcorp Industries, said, “The sale of SEIL accelerates the transformation of Sembcorp’s portfolio from brown to green while protecting the interests of all stakeholders. OIC is a trusted and reliable long-term partner, and we are confident that SEIL will continue to provide reliable services to its electricity distribution customers, as well as maintain stable relationships with suppliers, communities and employees. The provision of the innovative GHG emissions intensity reduction incentive rate also underlines our commitment to the sustainable energy transition.

Kalat Al Bulooshi, CEO of OIC, on behalf of Tanweer Infrastructure, said, “We are pleased to acquire this world-class asset, which provides essential energy to the community. We are committed to providing electricity to our customers continuously and efficiently and to working with our team of dedicated plant employees, our stakeholders such as electricity distribution customers and the local community, to achieve their goals. The availability of electricity for households and industries is of vital importance in today’s world of energy uncertainties.

Furthermore, he added, “This transaction is in line with OIC’s vision to become a global investment firm seeking successful investment opportunities in promising markets.”
The proposed acquisition is subject to the approval of Sembcorp shareholders at an Extraordinary General Meeting (EGM) of Sembcorp, to be convened around November 2022. The proposed acquisition is expected to be completed six months after the EGM and is subject upon satisfaction of certain conditions. previous.