Oman's Tanweer, the infrastructure operator, is seeking to acquire a wholly-owned power production unit in India, owned by a subsidiary of Singapore's Sembcorp Industries, for approximately $2.1 billion.
According to a statement by Sembcorp, published by Zawya, yesterday, Monday, it said that the deal is in Indian rupees worth 117 billion rupees, and that the price of the deal in dollars was calculated on the basis of the exchange rate last August 30 of 57 rupees per dollar, which is the date before the announcement of the deal, adding that Transaction price is subject to change.
Tanweer is indirectly owned by a consortium led by the Oman Investment Corporation, the Ministry of Defense Pension Fund and an Omani investment company, according to the statement.
The unit around which the acquisition is based is Sembcorp Energy India, one of India's largest energy producers, which operates two coal-fired plants, each with a capacity of 2.6 gigawatts.
According to the statement, Sembcorp agreed to the potential deal, but said that its completion is expected to be within 6 months, and according to specific conditions, including the approval of shareholders during the extraordinary general assembly of the company, which is expected to be next November.
The Oman Investment Corporation was established in 2005 with the aim of developing new projects and improving economic development in the Sultanate of Oman. Since 2009, it has been managing, in partnership with Sembcorp Industries, the Salalah Independent Water and Electricity Plant in Oman, which is valued at one billion dollars, according to its website and statement.
