Singaporean utility firm Sembcorp Industries said it will sell its India coal power business for $1.5 billion to Oman’s Tanweer Infrastructure.
The energy firm, which is in an ongoing decarbonisation drive, plans to sell 100 percent of its shares in Sembcorp Energy India, which operates two coal-fired power plants in the South Asian country.
Its regional chief, Vipul Tuli, said it does not plan to exit India altogether, and that the divestment will allow the firm to enter more renewable projects in the country.
Sembcorp is planning to hold a meeting in November to seek shareholders’ approval of the deal, and expects to finish the transaction in six months.
Tanweer Infrastructure, which is indirectly owned by Oman Investment Corporation and Dar Investment, will retain existing operation teams at the two plants, with Sembcorp continuing to offer technical advisory services.
Shares of Sembcorp rose as much as 5.1 percent to the highest on record after announcing the deal, Bloomberg has reported.
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