Singapore-based Sembcorp Industries announced on Friday that its unit is set to acquire majority interests ranging from 73% to 100% in various subsidiaries of Gelex Group, in deals collectively valued at S$218 million ($160.22 million).
The strategic move is expected to enhance Sembcorp's renewable energy footprint in Vietnam by incorporating 245 megawatts of operational wind, solar, and hydropower assets into its existing portfolio.
This acquisition aligns with Sembcorp's recent commitment to invest approximately S$10.5 billion, constituting about 75% of its total investments between 2024 and 2028, to propel the growth of renewable energy. The company aims to halve its carbon emissions by 2028, reflecting its dedication to sustainable practices and green initiatives.
Upon completion of the Gelex deals, Sembcorp's total renewable capacity is anticipated to reach 12.2 gigawatts, reinforcing its position as a key player in the renewable energy sector. The financing for these acquisitions will be facilitated through a combination of internal cash resources and external borrowings.
Sembcorp's move into the Vietnamese market is poised to contribute not only to the company's renewable energy goals but also to the broader sustainable development objectives in the region.