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Oman Investment Corporation-led Consortium to Acquire Sembcorp’s 2.6GW Power Plants in India for US$1.5 billion

The deal progresses OIC’s vision to be a leading asset manager targeting emerging markets with high growth potential, world class assets and investment opportunities.

Singapore – September 5, 2022 – A consortium led by Oman Investment Corporation S.A.O.C (“OIC”) in partnership with the Ministry of Defence Pension Fund, Oman (“MODPF”) and an Omani family office (collectively, the “Tanweer Consortium”) announces that it has, through Tanweer Infrastructure Pte. Ltd. (“Tanweer Infrastructure”), entered into a share purchase agreement with Sembcorp Utilities Pte. Ltd. (“SCU”) to acquire 100% of the shares of Sembcorp Energy India Limited (“SEIL”). SEIL is one of the largest independent power producers in India, operating two supercritical coal-fired plants totalling 2.6GW. SCU is a wholly-owned subsidiary of Sembcorp Industries (“Sembcorp”).

The signing was attended by HE Anwar Ahmed Muqaibal, the Sultanate of Oman Consulate General for Republic of Singapore.

The acquisition of SEIL for a consideration of INR117 billion, approximately US$1.5 billion, will result in Tanweer Infrastructure, a company incorporated by the Tanweer Consortium, becoming the sole shareholder of SEIL post completion. Tanweer Infrastructure will settle the final consideration via a deferred payment note provided by SCU.

Acquisition to accelerate transformation of OIC into an international player

This deal progresses OIC’s vision to build an international asset management business headquartered in the Sultanate of Oman. OIC is a leading Omani Private Equity Investment company established in 2005 with a strong track record in establishing, investing in and growing businesses. OIC focuses on investing in energy and infrastructure projects, real estate, logistics, healthcare as well as asset and project management services.

OIC’s partnering with MODPF for this acquisition is in line with its plan to work in partnership with Omani Pension Funds, Government Institutions and private sector investors to invest in profitable, well-managed business opportunities, with the aim to support the diversification of Oman’s economy and achieve the Sultanate’s National objectives.

Acquisition of a world-class power generation platform from a leading international developer and a trusted long-term partner

Sembcorp is a leading energy and urban solutions provider. Sembcorp and OIC have a proven and trusted relationship built over a decade, having jointly developed and operated the US$1 billion Salalah Independent Power and Water Plant in Oman since 2009.

To ensure continuity of the highest standards of reliability, operational efficiency and best practices in the management of SEIL’s supercritical plants, Sembcorp will continue to render technical advisory services to SEIL through a technical services agreement. SEIL’s existing operations team will continue to be employed under the new ownership of Tanweer Infrastructure. Tanweer Infrastructure will continue with ongoing initiatives at SEIL to reduce greenhouse gas emissions intensity.

Transaction protects stakeholders’ interest

SEIL provides critical energy needs to over 2.5 million households. It owns two of the largest and most efficient national grid-connected plants in India and is a trusted and reliable supplier through ongoing contractual relationships with power distribution companies.

The transaction protects the interests of important stakeholders such as SEIL’s existing power distribution customers and end users, employees, lenders as well as the wider Indian power system.

Wong Kim Yin, Group President and CEO of Sembcorp Industries said: “The sale of SEIL accelerates the transformation of Sembcorp’s portfolio from brown to green, while protecting the interests of all stakeholders. OIC is a trusted and reliable long-term partner, and we are confident SEIL will continue to provide reliable services to its power distribution customers, as well as maintain stability of relationships with suppliers, communities and employees. The provision of the innovative GHG emissions intensity reduction incentive rate also underscores our commitment to sustainable energy transition.”

Kalat Al Bulooshi, CEO of OIC, on behalf of Tanweer Infrastructure said: “We are glad to acquire this world-class asset, serving essential energy to the community. We are committed to deliver power to our customers on a continuous and efficient basis and to work with our team of committed employees at the plant, our stakeholders such as the power distribution customers and the local community, to achieve their objectives. Availability of power to households and industries is of vital importance in today’s world of energy uncertainties.” Furthermore, he added, “this transaction is in line with OIC’s vision to become a global investment house pursuing fruitful investment opportunities in promising markets.”

The proposed acquisition is subject to the approval of Sembcorp shareholders at an extraordinary general meeting (“EGM”) of Sembcorp, to be convened around November 2022. The proposed acquisition is expected to close six months after the EGM, and is subject to the satisfaction of certain conditions precedent.

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