- Adani Green Energy Limited (AGEL) signed share purchase agreements for the acquisition of 100% interest in SB Energy Holdings Limited (SBEHL) from SoftBank Group (80%) and Bharti Group (20%).
- The transaction is for a fully completed enterprise value of USD 3.5 billion (~INR 26,000 Crore) which makes it largest renewable M&A transaction of India.
Adani Green Energy Limited (AGEL):
- AGEL, a part of India-based Adani Group, has renewable portfolio with 19.3 GW of operating, under-construction and awarded projects, and locked-in growth projects catering to investment-grade counterparties. The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects with customers like NTPC, SECI and various state discoms.
SB Energy Holdings Limited:
- SBEHL is a private company limited by shares, incorporated in the UK, with investment from SoftBank group and Bharti group.
- SBEHL and its wholly owned subsidiaries hold renewable portfolio of 4,954 MW spread across Rajasthan, Andhra Pradesh, Karnataka and Madhya Pradesh in India which includes 84% solar, 9% wind-solar hybrid and 7% wind capacity. Out of 4,954 MW of total portfolio, 1,400 MW are operational and the balance 3,554 MW are under construction.
- Entire portfolio of SBEHL is under 25 years power purchase agreements with sovereign rated counterparties which include Solar Energy Corporation of India Ltd. (SECI), NTPC Limited and NHPC Limited. SBEHL had turnover of Rs. 1,015 Crore in FY21.
- This acquisition will enable AGEL to achieve its target renewable portfolio of 25 GW four years ahead of the target timeline. AGEL has also made renewable energy acquisitions recently from Sterling and Wilson and SkyPower global to build up capacity. AGEL plans to be largest renewable energy player globally.
- Adani Green’s stock price was up following the announcement of transaction.
- As we covered in our Feb 21 update, Total, French oil and gas giant has acquired minority stake of 20% in AGEL. Total has target of building 35GW of renewable energy capacity globally by 2025, as there is growing pressure on oil and gas companies to go green.
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
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