In a June 11 announcement, Mainboard-listed Sembcorp Industries shares that it has completed its acquisition of Australian power generator Alinta Energy from Chow Tai Fook Enterprises.
With the deal done, Sembcorp will obtain Alinta's 3.4GW operating portfolio and 10.4GW development pipeline, advancing Sembcorp's ambitions to expand its energy portfolio and deliver comprehensive energy solutions.
Sembcorp will retain Alinta's management team led by managing director and CEO Jeff Dimery and his leadership team. Alinta will continue to operate under its existing brand and operating structure to ensure continuity for key stakeholders. These include more than 1,000 employees and around 1.1 million customers and partners across Australia.
Alex Tan, Sembcorp’s CEO for Renewables, East, says: "Completing this acquisition is a significant step in executing our growth strategy and reinforces Australia as an important market for Sembcorp. With Alinta’s strong platform and pipeline, we are well-positioned to support their growth while ensuring reliable energy and long-term value to Australian communities and customers."
Dimery says that the completion of the deal would allow Alinta to focus on execution and delivery for its customers and the communities it serves. “Sembcorp’s long-term commitment, financial strength and renewables capability position us well to progress the investments needed to support a secure and cleaner energy future,” he adds.
Sembcorp announced the deal in December 2025, which received mixed reactions from analysts; at least one was positive on the transaction while some expressed concern for its balance sheet.
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On a pro-forma basis, Sembcorp’s earnings per share (EPS) will increase by 9% from $0.575 to $0.626 and return on equity (ROE) from 20.3% to 22.3% for the financial year ended Dec 31, 2024. For the 12 months ended June 30, 2025, EPS will increase by 14% from $0.572 to $0.651. Meanwhile, Sembcorp’s net tangible assets will fall to just 44 cents from $2.40 as a result of the substantial goodwill (which equates to the amount Sembcorp pays over and above Alinta’s valuation).
“This acquisition gives us a strong position in a key developed market and provides a scalable platform for Sembcorp to grow renewables and low-carbon solutions,” says Sembcorp CEO Wong Kim Yin when the transaction was announced. “While we remain focused on driving the energy transition in the markets we operate in, we recognise the importance of Alinta’s existing power generation assets toward energy security and affordability.”
Shares in Sembcorp remained unchanged at $6.13 on June 11.
