Singapore-based utility Sembcorp Industries said it would sell its Indian coal power business to Oman-based Tanweer Infrastructure for $1.5 billion. The energy company, which is on a decarbonization campaign, plans to sell its 100% stake in Sembcorp Energy India, which operates two coal-fired power plants in the South Asian country.

Its regional head, Vipul Tuli, said it did not plan to exit India entirely, and the divestment would allow the company to tap into more renewable energy projects in the country. Sembcorp plans to hold a meeting in November to seek shareholder approval for the deal, which it expects to close within six months.

Tanweer Infrastructure, which is indirectly owned by Oman Investments and Dar Investment, will retain the existing operational teams at the two plants, while Sembcorp will continue to provide technical advisory services. Shares in Sembcorp rose 5.1% to an all-time high after the deal was announced.Editor/XingWentao