Sembcorp in talks to buy Australia’s Alinta Energy from HK billionaire Henry Cheng’s Chow Tai Fook
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Sembcorp said the discussions are ongoing and no definitive transaction has been entered into.
PHOTO: REUTERS
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SYDNEY – Sembcorp said it is in talks to potentially buy Australian utility Alinta Energy.
Sembcorp “is currently considering potential acquisition opportunities which include Alinta Energy”, the company said in a statement on Dec 8, following reports in the Australian Financial Review (AFR) and The Australian newspapers.
The discussions are ongoing and no definitive transaction has been entered into, Sembcorp noted. Any takeover would need approval from Australia’s Foreign Investment Review Board.
Sembcorp shares fell after the news, closing nine cents, or 1.5 per cent, lower at $5.90 on Dec 8.
Alinta Energy is owned by Hong Kong billionaire Henry Cheng’s Chow Tai Fook Enterprises, which has been considering options to sell the company for most of 2025 and hired advisers for the sale in January.
Mr Cheng has been seeking to offload assets, including properties in the family’s luxury Rosewood Hotel Group, to overcome liquidity challenges at his New World Development
Chow Tai Fook bought Alinta Energy, which has more than one million customers in Australia and New Zealand, for about A$4 billion (S$3.4 billion) in 2017. It sold the company’s assets in Western Australia’s Pilbara region to APA Group for A$1.7 billion including debt in 2023.
Sembcorp, meanwhile, has been looking to expand in the Asia-Pacific region. It bought solar assets in India from ReNew Energy Global in October and was also said to be in talks to buy a minority stake in the gas-fired business of Thai energy company B.Grimm Power.
Sembcorp is being advised by Goldman Sachs Group and DBS Group Holdings, while Chow Tai Fook is being advised by RBC Capital Markets and UBS Group, according to the AFR.
Alinta’s biggest generating asset is the 1,200MW Loy Yang B brown coal-fired power plant in Victoria, which supplies about a fifth of the state’s power, according to the company.
In other Sembcorp news, Reuters reported on Dec 8 that the group has started talks over an initial public offering (IPO) of its India unit in Mumbai and appointed three investment banks, including Citi and HSBC, citing three sources familiar with the matter.
Talks are at an early stage and no decision has been made on the size of the offering. The move marks Sembcorp’s second attempt to list its India business after withdrawing a draft prospectus in January 2019 to inject new equity.
Sembcorp’s Indian arm, Sembcorp Green Infra, operates businesses in wind, solar and energy storage, and competes with the likes of Adani Green Energy and Avaada Group.
Indian markets are trading near record highs and have seen a surge in listings. Companies have raised more than US$16 billion (S$20.7 billion) so far in 2025, making India the world’s third-largest IPO market, according to Dealogic.
The IPO, targeted for launch within eight to nine months in Mumbai, will be advised by Citi, HSBC and India’s Axis Capital, the sources said, declining to be named as the matter is confidential.
Sembcorp Green Infra sold its thermal power assets in India for US$1.47 billion to Tanweer Infrastructure in 2023. It has further expanded its renewable energy portfolio and signed a deal in October to acquire ReNew Power’s solar energy unit for about US$188 million.
Sembcorp’s India unit made a profit of US$40 million in the year ending March 31, 2024, with revenues of US$252 million, regulatory disclosures show. BLOOMBERG, REUTERS
