Sembcorp Industries is reportedly near a deal to acquire Alinta Energy, the fourth-largest utility company in Australia, according to the Australian Financial Review.
Sembcorp, according to the AFR on Dec 7, is expected to sign a deal "as early as Thursday". The possible deal was months in the making with a Sept 28 report also by AFR suggesting that Sembcorp was mulling a bid.
In a statement on Dec 8, Sembcorp confirms it is in talks with the "relevant parties" and that no definitive transaction entered into yet and that there is no certainty that any such transaction will materialise.
"An appropriate announcement will be made by Sembcorp in the event that there are any material developments," the company says.
As listed on its website, Alinta Energy has a combined maximum capacity of more than 2.8 GW with its four gas-fuelled power stations, a wind farm and also a coal-fired power plant in Australia, and another gas-fuelled plant in New Zealand.
It provides gas and electricity to more than 1.1 million homes and businesses in Australia and New Zealand.
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Alinta Energy is now controlled by Hong Kong's Chow Tai Fook Enterprises, which bought the company for A$4 billion in 2017 from a group of lenders and investors, including TPG Capital.
Chow Tai Fook Enterprises is the private holding company of Hong Kong's Cheng family.
Besides the leading namesake jewellery retail chain, the family's other notable listed entity is real estate player New World Development, which, in recent months, has been trying to deleverage.
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Owning and operating overseas power assets is nothing new to Sembcorp Industries, with its already extensive presence in India, UK, China, and other parts of Southeast Asia.
In a separate Bloomberg report on Oct 22, Sembcorp Industries is said to be in talks to buy a minority stake in the gas-fired business of Thai energy company B.Grimm Power.
Sembcorp, according to the Bloomberg report, may acquire 25% to 30% stake for US$500 million to US$600 million, valuing B.Grimm at around US$2 billion.
Sembcorp Industries shares, as at 9.25 am on Dec 8, were down 1.17% to trade at $5.92.
