Sembcorp Industries Ltd is in ongoing discussions to potentially acquire Australia’s Alinta Energy, though no final agreement has been reached yet. The talks come as Alinta’s owner, Hong Kong billionaire Henry Cheng’s Chow Tai Fook Enterprises Ltd, continues exploring a full or partial sale of the utility after spending most of the year reviewing its options. Advisers were appointed in January to lead the sale process.
Chow Tai Fook bought Alinta Energy — which now serves more than one million customers across Australia and New Zealand — for over A$4 billion (RM10.92 billion) in 2017. In 2023, it sold Alinta’s Pilbara-region energy assets in Western Australia to APA Group for A$1.7 billion, including debt. The group has been working to unlock liquidity after financial pressures mounted at Cheng’s property company, New World Development Co, prompting the disposal of several assets, including those under the Rosewood Hotel Group.
Sembcorp, backed by Singapore sovereign wealth fund Temasek Holdings Pte, confirmed in a statement on Monday (Dec 8) that it is reviewing several acquisition opportunities, including Alinta Energy. The update followed media reports from the Australian Financial Review and The Australian. Sembcorp’s shares declined as much as 1.3% after the announcement.
The potential acquisition aligns with Sembcorp’s broader strategy to grow its footprint across the Asia-Pacific energy market. The company has recently been expanding through regional purchases — including buying renewable solar assets in India from ReNew Energy Global in October. It has also reportedly been in talks to take a minority stake in the gas-fired operations of Thailand’s B.Grimm Power PCL.
For the Alinta deal, Sembcorp is being advised by Goldman Sachs Group Inc and DBS Group Holdings Ltd, while Chow Tai Fook is working with RBC Capital Markets and UBS Group AG. Any takeover would require approval from Australia’s Foreign Investment Review Board before proceeding.
Alinta Energy’s largest power-generating asset is the 1,200MW Loy Yang B brown coal-fired power station in Victoria, which supplies roughly 20% of the state’s electricity. In recent years, Alinta has also been working to grow its renewable energy portfolio in preparation for the country’s transition toward cleaner energy sources.
