Overview
- Sembcorp agreed to acquire 100% of Alinta Energy and Latrobe Valley Power from Chow Tai Fook’s Pioneer Sail Holdings for an enterprise value of A$6.5 billion, with an estimated A$5.6 billion cash payment funded through bridge and working-capital facilities.
- The deal covers Alinta’s nationwide retail business serving about 1.1 million customers and roughly 3.5 gigawatts of generation capacity including five gas plants, one wind farm and the Loy Yang B coal power station in Victoria.
- Completion is targeted for the first half of 2026 and remains subject to shareholder and regulatory approvals.
- Sembcorp projects immediate financial benefits, citing a 14% increase in pro forma earnings per share and a rise in return on equity to 22.5% for the 12 months ended June 30, 2025.
- The company says the acquisition will increase its emissions intensity and absolute emissions, and it now expects to miss its 2028 and 2030 climate targets.