Sembcorp stresses Alinta Energy acquisition talks ‘still ongoing’
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The news: Singapore stock exchange listed Sembcorp has stressed that discussions to acquire electricity generator and retailer Alinta Energy from Hong Kong-based Chow Tai Fook Enterprises are “still ongoing”. This follows reports a deal could be struck as soon as this week.
The context: Alinta’s largest asset is the brown coal-fired power station Loy Yang B which has a maximum generating capacity of 1200 megawatts and supplies about one fifth of Victoria's power.
Sembcorp confirmed on Monday that “it is currently considering potential acquisition opportunities which include Alinta Energy and are in current discussions with the relevant parties”, in response to reports in the Australian Financial Review and the Australian on Sunday.
Reportedly, Sembcorp could finalise the deal this week which would conclude Chow Tai Fook’s multi-year effort to sell Alinta.
Sembcorp told shareholders that “no definitive transaction in respect of the potential acquisition has been entered into by Sembcorp with any party, and there is no certainty that any such transaction will materialise”.
The sources: Sembcorp statement, The Australian Financial Review, The Australian
