Singapore's Sembcorp powers into Australia with $4.3 billion Alinta Energy takeover

Adds context on CTFE in paragraphs 3-4, details on deal in paragraphs 5-9, Alinta's financial performance in paragraphs 11-12

By Roushni Nair

Dec 11 (Reuters) - Sembcorp Industries SCIL.SI said on Thursday its units will acquire Australia's Alinta Energy for an enterprise value of A$6.5 billion ($4.32 billion), marking one of the largest overseas expansions for the Singaporean company.

The deal hands Temasek-backed power company full control of one of Australia's biggest integrated energy retailers and generators, serving about 1.1 million customers and operating 3.4 gigawatts of capacity across gas, coal, wind and solar.

The acquisition also marks a portfolio shift for seller Chow Tai Fook Enterprises, the investment arm of Hong Kong billionaire Henry Cheng, which bought Alinta for A$4 billion in 2017.

CTFE has been reorganizing its holdings amid liquidity pressures at the Cheng family's heavily indebted real estate conglomerate, New World Development 0017.HK, where Cheng serves as chairman and executive director.

Sembcorp said it will acquire Alinta Energy via two of its Australian units by purchasing the operating entities Pioneer Sail Holdings and Latrobe Valley Power (Holdings), without revealing the ownership breakdown.

The acquisition gives the Singaporean company access to a 10.4 GW development pipeline, including wind and hydro systems, and Alinta's largest asset, a coal plant in Victoria.

The 1,200-megawatt Loy Yang B brown coal plant supplies roughly a fifth of the state's electricity, according to Alinta Energy's website.

Sembcorp on Monday had said that it had been evaluating potential acquisitions after media reports of talks with CTFE.

The company expects the deal to be immediately earnings-accretive, forecasting a 9% rise in pro-forma 2024 EPS and a 14% gain for the 12 months to June 2025.

The move also extends Sembcorp's Asia-Pacific expansion drive. The firm, which has been accelerating its renewables pivot, bought solar assets in India from ReNew Energy Global in October and has been deploying capital across the region.

CTFE said that under its eight-year ownership, Alinta's EBITDA grew at 13% compound annual growth rate, surpassing its top three peers by 14%.

Operationally, Alinta expanded generation capacity by 74% and added over 700 jobs during the same period, it added.

($1 = 1.5038 Australian dollars)

(Reporting by Roushni Nair in Bengaluru; Editing by Mrigank Dhaniwala and Vijay Kishore)

((Roushni.Nair@thomsonreuters.com))