Sembcorp Industries (SCI) is in talks to buy a minority stake in the gas-fired business of Thai energy company B.Grimm Power Pcl, according to people with knowledge of the matter. The company, which is backed by Singaporean sovereign wealth fund Temasek Holdings, may acquire a 25% to 30% stake for US$500 million to US$600 million, the people said, asking not to be identified because the discussions are private. That could value the gas-fired power business at around US$2 billion, they said.
Sembcorp’s interest comes as Thailand tries to expand its gas-power capacity to meet rising electricity demands from the likes of data centers and air conditioning, while cutting coal consumption.
Deliberations between Sembcorp and B.Grimm are ongoing and there’s no certainty that an agreement will be reached, the people said. B.Grimm declined to comment and Sembcorp didn’t respond to requests for comment. A possible B.Grimm stake sale has been a few years in the making, with Bloomberg News reporting in 2023 that the company was working with an adviser to identify potential investors.
Conventional energy accounted for 71% of B.Grimm’s portfolio as of the end of August, according to a presentation to investors. The company has said it intends to get renewable energy on an equal footing with conventional energy by 2030.
Sembcorp’s businesses include gas and diesel-fired power plants, as well as wind, solar, hydro and energy storage operations in Southeast Asia, China, India, the UK and Middle East.
