SG Morning Call | Singapore’s Sembcorp Buys Australia’s Alinta for $4.3 Billion in Renewables Push

Market Snapshot

Singapore stocks opened higher on Friday. STI rose 0.9%; Seatrium up 4%; Nio up 3%; UOB up 2%; Singtel, SingPost, Keppel up 1%.

Stocks in Focus

$CDL HTrust(J85.SI)$, $UOL(U14.SI)$, $GuocoLand(F17.SI)$: DBS Research has taken a bullish stance on Singapore property counters, initiating a sector-wide lift in its target prices for developers including CDL, UOL and GuocoLand. These stocks may see an upside of between 28 and 64 per cent from last traded prices on Wednesday. CDL shares ended S$0.005 or 0.6 per cent higher at S$0.83. UOL ended S$0.06 or 0.7 per cent higher at S$8.40, and Guocoland ended flat at S$2.02 on Thursday.

$Seatrium Ltd(5E2.SI)$: The group said on Thursday that a consortium made of Seatrium and GE Vernova was awarded a contract by European transmission operator TenneT to connect North Sea wind power to Germany’s power grid. The deal brings the company’s value of new contracts secured for FY2025 to over S$4 billion to date. Shares of Seatrium closed up 1 per cent or S$0.02 at S$2.08 on Thursday.

$Singtel(Z74.SI)$: The Infocomm and Media Development Authority imposed a S$1 million fine on Singtel for a 2024 voice disruption. The October incident last year affected about 500,000 of Singtel’s residential and corporate users for more than four hours.Shares of Singtel ended on Thursday 0.4 per cent or S$0.02 lower at S$4.56, before the fine was announced.

$HongkongLand USD(H78.SI)$: The group announced on Friday that it has made “significant advancements” towards the launch of its inaugural private real estate fund, following the previous day’s announcement of Keppel Reit’s planned acquisition of the group’s stake in Marina Bay Financial Centre Tower 3. The new fund is expected to hold more than S$8 billion in assets under management at its inception. Shares of Hongkong Land ended US$0.36 or 5.5 per cent higher at US$6.93 on Thursday.

SG Local News

Singapore’s Sembcorp Buys Australia’s Alinta for $4.3 Billion in Renewables Push

Sembcorp Industries Ltd. agreed to buy Australian power generator and retailer Alinta Energy Pty for A$6.5 billion ($4.3 billion) in enterprise value, furthering the Singaporean company’s ambitions to expand outside its home market.

Sembcorp, which is backed by state-owned Temasek Holdings Pte., said Thursday it will keep Alinta’s existing management team and operational structure. Chow Tai Fook Enterprises Ltd. has owned Alinta since 2017. The deal is expected to be completed in the first half of 2026, subject to regulatory approval.

Sembcorp sees Australia as key to reach a target to boost renewables capacity by almost a quarter to 25 gigawatts by 2028. The Singaporean company has spent more than S$5 billion ($3.9 billion) since 2020 to grow that portfolio sixfold. It owns wind, solar, hydro and energy assets in markets including Southeast Asia, India and China that far exceed the city-state’s own capacity.