EDP Renewables (EDPR), the world's fourth largest renewable energy producer based in Madrid, Spain, has agreed to acquire a 87.4% stake in Singapore-based Sunseap, the largest distributed solar player and top four solar player in Southeast Asia.
The deal has been reached through an agreement with the major shareholders of Sunseap. The biggest single shareholder is Banpu Public Company Limited, an energy concern listed on the Stock Echange of Thailand. Banpu says it is selling its 47.5% stake in Sunseap for US$364 million. Singapore's Temasek Holdings is also selling its stake.
The completion of the transaction is subject to regulatory and other customary precedent conditions. Between signing and closing, EDPR may raise its stake to 91.4%. Credit Suisse acted as exclusive financial adviser to EDPR, while Baker McKenzie Wong & Leow acted as legal counsel.
In April 2021 Sumitomo Corporation announced that it had made an investment in Sunseap. Other Japanese shareholders include Shikoku Electric Power and Sumitomo Mitsui Finance & Leasing.
Sunseap is a solar-focused renewables company headquartered in Singapore, and has more than 400 employees spread across Singapore, Vietnam, Malaysia, Indonesia, Thailand, Cambodia, China, Taiwan and Japan. The company operates across the entire solar value chain through a build, own and operate model for rooftop, ground-mounted utility-scale and floating solar PV projects.
Its portfolio includes 5.5 gigawatts of renewable energy projects at different stages of development: 540 megawatts of operating and under-construction solar projects, 127MW of secured capacity and a 4.8GW pipeline in different development stages.
Energias de Portugal (EDP) has a 75% stake in EDP Renewables, with the balance listed on Euronext Lisbon.
“We are delighted to partner up with Sunseap for the Asia-Pacific markets, creating a new regional platform and making EDPR a truly global renewables energy player,“ says Miguel Stilwell d'Andrade, chief executive officer of EDP & EDP Renewables. "The strategy and vision of Sunseap is a perfect fit to EDP´s leading role within the ongoing energy transition and its local knowledge and track record in the Asia-Pacific region, together with EDPR's scale and technological expertise, will enable us to fully tap the potential of such markets.”
According to EDPR, Sunseap is fully complementary to its business both geographically and technologically, and allows the company to reinforce its global leadership position in all key renewables markets. The transaction allows EDPR to establish its presence in APAC with a sizeable portfolio, and an experienced development team providing a growth platform for the region
In June 2021 EDPR entered the Vietnamese market by reaching an agreement with Trina Solar, a leading PV and smart energy total solution provider, to acquire a 28MWac (megawatts of alternating current power) solar PV project for US$36 million.
