Sembcorp Invests $160 Million to Acquire Controlling Interest in Gelex’s Subsidiaries

GELEX’s power portfolio comprises wind, solar, and hydropower plants with a combined capacity of 245MW. With the proposed transaction, Sembcorp plans to incorporate these operational renewable assets into its existing portfolio in Vietnam, boosting its renewable presence to over 450MW in the country. Upon completion of the transaction, Sembcorp’s gross renewables capacity will reach 12.2GW. The assets involved in the acquisition are backed by long-term power purchase agreements with Vietnam Electricity, a state-owned enterprise.

Sembcorp and Gelex will continue to explore renewable energy opportunities in Vietnam, leveraging the success of this transaction. The maximum equity consideration of around $160 million will be funded by a combination of internal cash resources and external borrowings, with completion expected in the first half of 2024. Sembcorp, headquartered in Singapore, is a prominent provider of energy and integrated urban solutions.

The collaboration with Sembcorp allows GELEX Group to further its strategy of establishing partnerships with leading multinational corporations to expand markets and value chains for its core businesses. GELEX anticipates that the combination of its reputation and domestic capacity with Sembcorp’s management expertise and international experience will lead to mutual success, benefiting both parties and contributing to Vietnam’s economic development.

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