Following the purchase, Sembcorp adds a combined 196MW of operational wind and solar assets to its portfolio.

Sembcorp will eventually also acquire a 73 per cent stake in the fourthGelex Group subsidiary, expected in the second half of 2024 subject to regulatory approvals, which operates a 49MW hydropower asset.

Upon completion, Sembcorp’s gross renewable energy capacity in Vietnam will be 455MW, while the group’s gross renewable energy capacity will be 14.4GW.

The deal helps Sembcorp expand its presence in Vietnam's renewable energy market, while assisting Gelex's efforts to restructure its investment portfolio.

According to KPMG, Vietnam’s aggressive transition towards renewable energy, decentralisation of power generation, expanding infrastructure developments, and increasing energy demand to meet its economic growth will likely provide a dynamic and active merger and acquisition market in the coming years.