Singapore's Sembcorp spends $160 million to acquire majority stakes in Gelex's subsidiaries

GELEX’s operating power portfolio includes wind, solar, and hydropower plants with total capacity of 245MW.

Through this proposed transaction, Sembcorp will add 245MW of operational renewable wind, solar and hydropower assets to its current portfolio in Vietnam and expand its renewables' presence in the country to over 450MW. The group’s gross renewables capacity will total 12.2GW upon completion of the transaction.

The assets to be acquired through the transaction are underpinned by long-term power purchase agreements contracted with state-owned enterprise Vietnam Electricity. Sembcorp and Gelex will continue to explore opportunities in renewable energy in Vietnam, building upon the success of the transaction.

A maximum equity consideration of approximately $160 million, which Sembcorp expects to fund through a mix of internal cash resources and external borrowings, shall be payable at completion. Completion of the transaction is expected in the first half of 2024.

Sembcorp, headquartered in Singapore, is a leading energy and integrated urban solution provider. By cooperating with Sembcorp, GELEX Group continues to realise its strategy of developing a partnership ecosystem with leading multinational corporations to expand markets and value chains for its core businesses.

GELEX expects that the combination of its reputation and domestic capacity with Sembcorp’s management strength and international experience will create great successes, benefit both parties, and contribute to the economic development of Vietnam.

Vietnam's Petrovietnam Technical Services Corporation (PTSC) and Singapore's Sembcorp Utilities Pte Ltd (Sembcorp) secured a crucial licence on August 29 to advance its offshore renewable energy project in Vietnam, with ambitions to export clean energy to Singapore.

Vietnam will be exporting 1.2GW of low-carbon electricity, mostly from wind power, to Singapore.

After more than 25 years in Vietnam, Sembcorp is committed to the country’s sustainability goals. VIR’s Bich Ngoc talked with Charles Chong, head of Sembcorp Development in Vietnam, about the Singaporean group’s achievements and new targets.