Sembcorp buys 245 MW renewable projects in Vietnam

The purchase of the majority of Gelex brings Sembcorp’s Vietnam portfolio to 450 MW.

Sembcorp has signed an agreement to acquire majority interests of between 73% and 100% in various subsidiaries of Vietnam-based machinery and equipment company Gelex Group Joint Stock Company (Gelex).

Through the purchase, Sembcorp will include 245 megawatts (MW) of operational renewable wind, solar, and hydropower projects to its overall energy portfolio in Vietnam, leading to over 450 MW. It will accumulate a total of 12.2 GW in gross renewables capacity.

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Passage for the Proposed Transaction is built upon the long-term agreements Sembcorp has with the state-owned enterprise Vietnam Electricity. With Gelex, Sembcorp will elevate its renewable energy developments throughout the region.

An equity consideration of around $160.2m (S$218m) will be payable upon completion, which is set for the first half of 2024. The earnings of Sembcorp will remain unaffected throughout the acquisition for the fiscal year 2023.

$1 = S$1.36