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Cheryl Arcibal

Chow Tai Fook Enterprises (CTFE), the parent company of embattled Hong Kong developer New World Development (NWD), is selling Australian utility Alinta Energy to a Singapore-based group for A$6.5 billion (US$4.3 billion).
Sembcorp Industries will acquire 100 per cent ownership of Alinta and its units, as well as Latrobe Valley Power (LVP) and its subsidiaries, from Pioneer Sail Holdings, which is owned by CTFE and Pioneer Sail Singapore, according to Sembcorp’s filing with the Singapore stock exchange on Thursday evening.
Alinta owns a portfolio of power-generation assets and a gas and electricity retail business throughout Australia, while LVP owns and operates the coal-fired Loy Yang B Power Station in the Latrobe Valley in Victoria, in the southeastern corner of the country.
The group also holds joint-venture interests in the Yandin Wind Farm in Western Australia and the Spinifex Offshore Wind development off the coast of Victoria.
As of June, Alinta had a book value of A$2.5 billion and net tangible assets of A$758 million, while net profits before income tax and before non-controlling interests were A$530 million.
CTFE acquired Alinta in 2017 for A$4 billion, marking its first major foray into Australia’s energy sector.
“Our eight-year investment in Alinta has played an important role in providing reliable and affordable energy to Australians,” said Henry Cheng Kar-shun, Chow Tai Fook Group chairman. “I am immensely proud of what the CTFE and Alinta teams have accomplished on the energy transition journey.”
Cheng also thanked the Alinta board and the CTFE team for their partnership and commitment.
“We are excited for Alinta’s next chapter with Sembcorp and look forward to watching Alinta continue to grow under Sembcorp’s leadership,” he added.
Under CTFE, Alinta’s cash flow doubled, which was reinvested into the business, the company said.
In its filing, Sembcorp said the acquisition provided “an attractive portfolio” of development opportunities, including 10.4 gigawatts of renewables and firming systems.
“Alinta’s proven delivery track record also creates a highly scalable expansion platform in an attractive developed market,” it said.
The deal is subject to conditions and regulatory approvals.
In October, NWD, one of Hong Kong’s most indebted developers, reached an agreement for a HK$5.9 billion (US$758 million) loan facility from Deutsche Bank, pledging its Victoria Dockside development in east Tsim Sha Tsui as collateral.
Discussions were also under way to return NWD’s shopping centre development near Hong Kong’s airport to the Airport Authority, the Post reported in July.
In June, NWD struck a last-minute deal with banks and creditors to refinance HK$88.2 billion in debt, narrowly avoiding a default that could have significantly impacted Hong Kong’s financial and property sectors.


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Sembcorp Industries to acquire 100 per cent ownership of Alinta Energy, which Chow Tai Fook acquired in 2017


Sembcorp Industries to acquire 100 per cent ownership of Alinta Energy, which Chow Tai Fook acquired in 2017.


Chow Tai Fook sells Australian energy assets to Singapore group for US$4.3 billion

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Sembcorp Industries to acquire 100 per cent ownership of Alinta Energy, which Chow Tai Fook acquired in 2017

Sembcorp Industries to acquire 100 per cent ownership of Alinta Energy, which Chow Tai Fook acquired in 2017