Herbert Smith Freehills Kramer advises on A$6.5B sale of Alinta Energy to Sembcorp

Herbert Smith Freehills Kramer (HSF Kramer) has advised Chow Tai Fook Enterprises (CTFE) on the strategic review and sale of Alinta Energy, one of Australia’s leading energy retailers and generators, to Sembcorp Industries, a major Singaporean listed utility, for A$6.5 billion.

The transaction is expected to close in 2026 following satisfaction of customary conditions precedent.

Chow Tai Fook Enterprises (CTFE) is a privately held, diversified conglomerate based in Hong Kong, with investments spanning real estate, hospitality, infrastructure, and energy. CTFE has been the 100% owner of Alinta Energy since 2017 and has overseen its growth and operations in the Australian energy market.

Projects, Energy and Infrastructure (PEI) Managing Partner, Nick Baker and Corporate Partner Baden Furphy led the firm’s M&A team with support from Counsel Ying Yi Soh, Senior Associate Dan English and Solicitor Stefan Baldwin. The competition work was led by partners, Liza Carver and Sarah Benbow and the finance work was led by partner Elizabeth Charlesworth with support from Senior Associate Tom Allen.

Managing partner, Nick Baker said, “This transaction is significant for the Australian energy market. It brings new investment to one of the country’s largest energy companies at a time when the sector is delivering through the challenges of the energy transition.

“We are grateful for the opportunity to support CTFE on this significant transaction to continue to assist the Alinta Energy team on the delivery of their strategy.

This transaction further cements HSF Kramer’s position as a leading legal adviser in the Australian energy transition market. HSF Kramer’s market-leading work in the clean energy sector include:

• Windlab, on Australia’s largest clean energy deal with global mining group, Rio Tinto.
• Marinus Link on its A$3.8 billion project financing of Stage One of the Marinus Link interconnector project (the Project),
• HMC Capital Limited on its agreement to acquire Neoen’s Victorian renewable generation and storage portfolio for AUD$950 million.
• Squadron Energy on the successful financial close of its A$1billion facility from 10 banks for the 100-turbine, 450MW wind farm located in Queensland (Clarke Creek Wind Farm).