Singapore’s Sembcorp Industries said it has agreed to acquire Alinta Energy, the Australian power generator and retailer, for A$6.5 billion (about $4.3 billion) in enterprise value.
The Temasek-backed power company will acquire 100% of Alinta from CTFE-owned Pioneer Sail Holdings Limited and Latrobe Valley Power under a share sale agreement, the companies said in a joint statement.
When the deal is approved, Sembcorp said it plans to maintain Alinta’s existing management team and operating structure, with managing director and CEO Jeff Dimery continuing to run day-to-day operations.
Alinta, which CTFE has fully owned since 2017, operates a mix of generation and retail businesses across Australia. It has grown its generation capacity by 74% to 3.4 gigawatts under the Hong Kong group’s ownership.
For Sembcorp, the deal adds a portfolio of conventional power assets with high availability, with the company citing a 93% dispatchable portfolio availability. It will also add a 10.4GW pipeline of renewable and firming projects that will support Australia’s energy transition and grid reliability.
The acquisition will raise Sembcorp’s exposure to developed markets from 25% to 31% of its generation portfolio, as it targets 25GW of renewable capacity by 2028. The group has invested more than S$5 billion in renewables since 2020, lifting its green capacity from 3.2GW to 20.2GW.
“By combining Sembcorp’s global renewables expertise and access to capital with Alinta’s strong local workforce and project pipeline, we believe we can contribute meaningfully to Australia’s decarbonisation goals,” said Alex Tan, Sembcorp’s president and CEO, Renewables, East.
CTFE chairman Henry Cheng called Sembcorp’s entry “the next chapter” for the business.
Alinta Energy is one of Australia’s largest energy retailers, generators, investors, and developers. It has an owned and contracted generation portfolio of 3,400 MW, including gas, wind, solar, and coal, across Australia and New Zealand.
Sembcorp, on the other hand, has a balanced energy portfolio of 28.3GW, including 20.2GW of gross renewable energy capacity, across 11 countries.
The firm has started talks over an initial public offering of its India unit in Mumbai and appointed three investment banks, including Citi and HSBC, Reuters reported in November.
