Singapore-based energy and urban solutions group Sembcorp Industries has made one of its largest overseas investments to date, agreeing to acquire Australia’s Alinta Energy in a deal valued at AUD $6.5 billion.
The acquisition gives Temasek-backed Sembcorp full control of one of Australia’s largest integrated energy retailers and generators, adding approximately 1.1 million customers and 3.4 gigawatts (GW) of installed generation capacity across gas, coal, wind and solar to its portfolio.
Sembcorp said the transaction would be executed through two of its Australian subsidiaries, which will acquire the operating entities Pioneer Sail Holdings and Latrobe Valley Power (Holdings). The company did not disclose the ownership split between the entities.
The deal significantly accelerates Sembcorp’s Australian growth strategy and expands its engineering, procurement and construction (EPC) capabilities in-market, while strengthening its broader Asia-Pacific footprint. It also provides access to Alinta Energy’s 10.4 GW development pipeline, which includes wind and hydro projects, alongside established thermal assets.
Alinta’s largest asset is the 1,200 megawatt (MW) Loy Yang B brown coal power station in Victoria’s Latrobe Valley, which supplies roughly 20 per cent of the state’s electricity.
Sembcorp said the acquisition supports a balanced portfolio approach as it continues to pivot towards renewables while maintaining firming capacity.
Financially, Sembcorp expects the transaction to be immediately earnings accretive, forecasting a 9 per cent uplift in pro-forma Financial Year 2024 earnings per share and a 14 per cent increase for the 12 months to June 2025.
The sale marks a strategic shift for seller Chow Tai Fook Enterprises (CTFE), the investment arm of Hong Kong billionaire Henry Cheng, which acquired Alinta Energy for AUD $4 billion in 2017.
CTFE has been restructuring its portfolio amid liquidity pressures at New World Development, the Cheng family’s heavily indebted property group.
CTFE said that during its eight-year ownership, Alinta Energy delivered a 13 per cent compound annual growth rate in EBITDA, expanded generation capacity by 74 per cent, and created more than 700 jobs.
The acquisition shows the organisation’s intent to play a long-term role in Australia’s evolving energy mix, which involves combining large-scale generation, retail reach, and a growing renewables pipeline as the market transitions.
