Sembcorp Industries to sell Indian coal power unit for 117 billion rupees

SEMBCORP Utilities, a wholly-owned subsidiary of Sembcorp Industries : U96 0%, has entered an agreement to sell its 100 per cent stake in its India-based coal power unit for 117 billion rupees (S$2.1 billion) to Tanweer Infrastructure.

The unit, Sembcorp Energy India Limited (SEIL), is one of the largest independent power producers in India, operating 2 coal-fired plants totalling 2.6GW. The S$2.1 billion price tag is at an implied price-to-book multiple of 1 time, Sembcorp said in a bourse filing on Monday (Sep 5).

The buyer, Tanweer, is indirectly owned by a consortium led by the Oman Investment Corporation (OIC) in partnership with the Oman Ministry of Defence Pension Fund and Dar Investment.