Singapore: Sembcorp to buy UK Power Reserve from Inflexion, Equistone for $287m

Visual from UK POwer Reserve website

Singapore-based energy group Sembcorp Industries (Sembcorp) on Thursday announced that it has reached an agreement to acquire UK Power Reserve (UKPR), the largest flexible distributed energy generator, for £216 million (approximately $287 million).

The deal marks a major step in line with Sembcorp’s new strategy to position itself for the global energy transition, grow its merchant energy capabilities, and build an integrated energy business in the UK, it said in a statement.

As part of the agreement, Sembcorp, via a wholly-owned entity, will fully acquire Repono Holdco, a UKPR’ holding company, from private equity investors Inflexion and Equistone, each holding a 42.5 per cent stake in the company, and from members of UKPR management that own the balance 15 per cent.

UKPR owns and operates a portfolio of energy generation projects across 32 locations in England and Wales, with 533 MW in operation and a further 480 MW in construction and under development. This combined portfolio of over 1,000 MW comprises small-scale, fast-ramping power generation assets and rapid response batteries.

The company has a turnover of £75 million, and employs around 150 people.

“This acquisition gives Sembcorp strong capabilities in the new growth niche of flexible distributed generation and energy storage, in line with our goal of being a future-ready business that is poised to benefit from the global energy transition. It will also build up Sembcorp’s merchant energy business, which we have identified as an area of focus for the Group,” Neil McGregor, Group President & CEO of Sembcorp.

Sembcorp was selected as the buyer for the deal, following a competitive process initiated by UKPR’s shareholders. The acquisition, which is likely to close by the end of this week, will be funded through a mix of internal cash resources and external borrowings. Post acquisition, Sembcorp will consolidate all assets and liabilities of UKPR, including its net debt.

The power in the UK is undergoing an unprecedented transition. Renewables are on the rise with the National Grid estimating that installed renewable capacity could grow to over 110 gigawatts in 2050, from just under 40 gigawatts today. The intermittency of renewables, coupled with the closure of ageing thermal plants, has led to increased demand for flexible energy solutions.

In the UK, Sembcorp already provides energy, centralised utilities and services to some of the country’s largest chemical and process industry firms at the 2,000-acre Wilton International site on Teesside. With the addition of UKPR, Sembcorp’s UK energy portfolio now includes conventional combined cycle generation, distributed energy generation, rapid response batteries, biomass and energy-from-waste assets.

Sembcorp has a balanced energy portfolio of over 12,000 MW, including thermal power plants, renewable wind and solar power assets, as well as biomass and energy-from-waste facilities. In addition, it provides offshore and marine engineering services.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.