China’s SDIC Is Said to Weigh Selling UK Renewable Energy Assets
(Bloomberg) -- State Development and Investment Group Co. is considering selling its energy assets in the UK, which it operates through Edinburgh-based subsidiary Red Rock Renewables, according to people familiar with the matter.
SDIC is working with a financial adviser on the potential disposal, the people said, asking not to be identified because the deliberations are private. A sale of the assets, which include offshore and onshore wind farms, could be valued at £500 million ($673 million) to £700 million, the people said.
SDIC has sounded out potential buyers to gauge interest, the people said, adding that considerations are ongoing and no final decisions have been made.
A representative for SDIC didn’t respond to a request seeking comment.
Red Rock Renewables’ projects include the 50-megawatt Afton Wind Farm in East Ayrshire, as well as Benbrack Onshore Wind Farm in Dumfries and Galloway, and stakes in Beatrice Offshore Wind Farm and Inch Cape Offshore Wind Farm off the north and east Scottish coast, respectively, its website shows.
Founded 30 years ago, SDIC had 876 billion yuan ($123 billion) in assets and about 50,000 employees as of the end of 2024. The Chinese state-backed company says it focuses on energy-related industries, digital technology and science, health and industrial finance. Its revenue last year was 195.8 billion yuan and net income was 25.6 billion yuan.
Listed SDIC unit SDIC Power Holdings Co. said last October that Red Rock Renewables would be investing as much as £962 million in the Inch Cape wind power project, which it expects to be fully operational in 2027. SDIC Power’s shares have fallen 22% in Shanghai this year, giving the company a market valuation of 104 billion yuan. The Shanghai Composite Index is up 15% in 2025.
Several high-profile Chinese companies have scaled back their overseas exposure after snapping up international assets ranging from airports and hotel chains to football clubs. They include Dalian Wanda Group Co., Fosun International Ltd. and HNA Group Co., which became saddled with debt and faced pressure from the government in Beijing to rein themselves in.
But others are expanding their reach, such as China Southern Power Grid Co., which is in advanced talks to acquire a controlling stake in Chilean power transmission company Transelec SA, growing its influence in Latin America, Bloomberg News reported last week.
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