Sembcorp to reorganise India energy biz under single entity
Singapore-based Sembcorp Industries today said it will reorganise its India energy operations under one entity Sembcorp Energy India Ltd (SEIL) and control a majority stake of 93.73 per cent in it.
The Sembcorp Industries (SI), in a filing to Singapore stock exchange, announced “the reorganisation of its India energy operations, for a more streamlined shareholding structure and greater synergy”. As part of this exercise, Sembcorp Industries arm, Sembcorp Utilities (SCU) has transferred its entire 88 per cent stake in Sembcorp Gayatri Power (SGPL) to thermal Powertech Corporation India (TPCIL). The TPCIL has also been renamed SEIL.
Similarly, Sembcorp’s partner Gayatri Energy Ventures (GEVPL) has transferred its entire 12 per cent stake in SGPL to the SEIL. The SCU has also transferred its entire 71.6 per cent stake in Sembcorp Green Infra to the SEIL. The SI said that the consideration for these stake transfers was settled in the SEIL shares, issued as fresh equity to the SCU and GEVPL, taking into account their respective share holdings in the SGPL and SGI, as agreed between the SCU and GEVPL.
In addition, the SCU is in the process of completing its acquisition of the remaining shares in the SGI from IDFC Private Equity Fund III. This acquisition was previously announced on August 31, 2017. The SCU has assigned its rights under the acquisition to the SEIL, and completion is expected in the first quarter of 2018.
These transfers and transactions, the Sembcorp’s thermal and renewable energy businesses, will be consolidated under a single entity, with the SGPL and SGI as wholly-owned subsidiaries of the TPCIL. Sembcorp Industries will hold an effective stake of 93.7 per cent in the SEIL, while the GEVPL will hold the remaining 6.3 per cent, it said.
This reorganisation is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the fiscal ending on December 31, 2018, it added.