Sembcorp, a player in Singapore's energy sector, has finalized the acquisition of majority stakes in three Vietnamese firms, bolstering its renewable energy portfolio in the country. The acquisition includes operational wind and solar assets totaling 196 MW.
In a statement released on Wednesday, Sembcorp announced that its wholly-owned subsidiary, Sembcorp Solar Vietnam Pte Ltd, has acquired majority stakes in three out of four units of Gelex Group JSC, a leading Vietnamese electrical equipment manufacturer.
The deal, originally disclosed in November 2023, involves Sembcorp acquiring stakes ranging from 73% to 100% in several subsidiaries of Gelex. These subsidiaries collectively own 245 MW of operational wind, solar, and hydropower plants.
Regarding the acquisition, Sembcorp mentioned in its statement: “We are pleased to finalize the acquisition of these strategic assets, which significantly enhance our renewable energy capabilities in Vietnam.”
Financial details of the transaction were not disclosed. The acquisition of the hydropower asset, which involves acquiring a 73% stake in a Gelex unit owning a 49-MW hydropower plant, is expected to be completed in the second half of 2024, pending regulatory approvals.
Upon completion of the acquisition of all four Gelex subsidiaries, Sembcorp's gross renewables capacity in Vietnam will increase to 455 MW. Globally, Sembcorp's total gross renewables capacity will reach 14.4 GW, consolidating its position as a major player in the renewable energy sector.
