Singaporean firm Sembcorp paid $131 million to acquire renewable energy projects in Vietnam

Singaporean giant Sembcorp Industries has spent S$174 million ($131.1 million) to acquire majority stakes in three of the four renewable energy subsidiaries of Vietnamese conglomerate Gelex.

According to Sembcorp’s H1 2024 results review, the acquisitions were completed in May and June.

Combined with cash and equivalents in acquired subsidiaries of negative SGD11 million (USD8.3 million), Sembcorp recorded a cash outflow of SGD163 million (USD122.7 million) as a result of the move, the report said.

As Sembcorp notes, these acquisitions contributed to the giant’s turnover of SGD 7 million (USD 5.3 million) and a profit of SGD 1 million in the company’s results in the first half of 2024.

In June, Sembcorp Industries announced it had acquired majority stakes in three subsidiaries of Vietnamese conglomerate Gelex, adding 196 MW of wind and solar assets to its portfolio in the country.

Sembcorp Industries said the acquisition was made by its wholly owned subsidiary Sembcorp Solar Vietnam Pte Ltd.

In July, Vietnamese industrial giant Gelex Group said it was finalizing the sale of the 49-MW Song Bung 4A hydroelectric project to Sembcorp.

It was also reported that the three projects sold to Sembcorp are the Huong Phung wind power project, the Gelex Quang Tri wind power project and the Gelex Ninh Thuan solar power project with a combined capacity of 196 MW.