Sembcorp Industries Announces Strategic Acquisition of Alinta Energy, Marking Major Expansion into Australia

Singapore, December 12, 2025 – Sembcorp Industries has taken a significant step in its global growth strategy with the proposed acquisition of Alinta Energy, one of Australia’s leading integrated energy companies. The move, announced during an analyst briefing on December 11, positions Sembcorp for accelerated expansion in a AAA-rated market with strong long-term fundamentals and a firm national commitment to energy transition.

A Strategic Entry Into a High-Growth Market

Australia’s stable regulatory environment, legislated 2050 net-zero target, and supportive energy transition policies make it an attractive market for large-scale energy investments. Through this acquisition, Sembcorp will gain immediate access to Australia’s fast-growing renewables market and a significant 10.4GW development pipeline of renewable and firming projects.

Alinta Energy: A High-Quality, Integrated Energy Platform

Alinta Energy brings to Sembcorp a strong portfolio of 3.4GW of installed and contracted capacity, diversified across coal, gas, wind, and solar. The company currently serves almost 1.1 million customers across Australia and maintains one of the highest dispatchable availability rates in the market. Its vertically integrated operations across both the East and West Coasts provide a valuable foundation for Sembcorp’s long-term expansion.

Immediate Financial Upside for Sembcorp

The acquisition is expected to be earnings accretive from day one, enhancing Sembcorp’s scale and portfolio diversification. Pro forma estimates show increases in:

• Earnings Per Share (EPS)

• Return on Equity (ROE)

• Portfolio mix across renewables, gas, and storage

Sembcorp intends to fund the A$5.6 billion purchase fully in cash through bridge and working capital facilities.

Commitment to a Responsible Energy Transition

Sembcorp acknowledged that the addition of coal-fired Loy Yang B — which supplies around 20% of Victoria’s electricity — will temporarily raise the company’s emissions profile. However, the company reaffirmed its long-term goal of achieving net zero (Scope 1 and 2) by 2050.

With the support of Alinta’s 10.4GW renewables and firming pipeline, Sembcorp plans to:

• Invest in renewable energy and storage technologies

• Improve efficiency in existing fossil-fuel operations

• Explore low-carbon technologies

• Maintain energy affordability and reliability during the transition

Group CEO Wong Kim Yin emphasised the company’s commitment to working with Australian stakeholders to support a balanced and inclusive transition.

Regulatory Approvals Underway

Completion of the acquisition is targeted for the first half of 2026, pending:

• Shareholder approval at Sembcorp’s upcoming EGM

• Clearance from Australia’s Foreign Investment Review Board

• Approval from the Australian Competition and Consumer Commission

A detailed circular will be distributed to shareholders ahead of the EGM.