Sembcorp unit to acquire 30% interest in Senoko Energy

SEMBCORP’S wholly owned subsidiary Sembcorp Utilities has signed a sale and purchase agreement with energy solutions provider Engie Global Developments to acquire a 30 per cent interest in energy supplier Senoko Energy.

The interest is held through Engie’s wholly owned subsidiary TWMB Holdings, mainboard-listed Sembcorp said in a bourse filing on Tuesday (Sep 17). The sum of the proposed deal was not disclosed.

The proposed acquisition will be complementary to Sembcorp’s current portfolio of energy assets and will enhance its capability to support Singapore’s energy transition, it said in the statement.

The deal is subject to certain conditions, including regulatory approvals from Singapore’s Energy Market Authority and the pre-emption rights of other shareholders of Senoko Energy.

Should these conditions be met, the acquisition is expected to be completed in the fourth quarter of 2024, said Sembcorp.

The proposed acquisition will be funded through the company’s internal cash resources and/or external borrowings.

If completed, the purchase is expected to be accretive to the earnings of Sembcorp and would not have a material impact on its net tangible assets per share for the financial year ending Dec 31, 2024.

Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19 on Tuesday before the announcement.