SunEdison had in June said it would acquire Continuum Wind, which has assets in India, for an undisclosed amount
Mumbai: SunEdison Inc, the world’s largest renewable energy company, has terminated a deal to acquire Singapore-based Continuum Wind Energy Ltd and will go slow on acquisitions globally, Pashupathy Gopalan, president, SunEdison Asia Pacific said on Tuesday.
US-based SunEdison had in June said it would acquire Continuum Wind, which has assets in India, for an undisclosed amount.
Mint on 22 October first reported that SunEdison has backed out of a deal to buy Continuum Wind under pressure to reconsider recent deals after a series of big acquisitions worth over $6 billion, and as it looks to consolidate its business globally and cut costs.
“We are terminating the Continuum acquisition transaction that we had signed several months back," Gopalan said on Tuesday, speaking over the phone from Chennai. “We continue to be extremely enthusiastic about India as one of our most attractive sustainable market."
India is now contributing 20-25% of the SunEdison’s global business, Gopalan said.
In its home market, SunEdison has been hurt by a slump in its share price following the initial public offer (IPO) of subsidiary Terraform Global Inc. in July, which did not raise as much as expected. In October, SunEdison said it would cut 15% of its 7,260 strong workforce. Within days, it also terminated a $700 million deal to buy renewable energy firm Latin American Power, which operates assets in Chile and Peru.
The global job cuts would impact about 5% of employees in India, Gopalan said.
Continuum Wind, a company focused on wind energy generation, owns and operates 412.5 megawatt (MW) of wind energy projects and is controlled by Morgan Stanley Infrastructure (MSI), an infrastructure-focused private equity fund.
Earlier this month, SunEdison’s aggressive bid for the tender of 500 MW capacity offered under the Jawaharlal Nehru National Solar Mission (NSM) in Andhra Pradesh saw India’s solar power tariff touch a record-low of ₹ 4.63 per kWh (kilowatt-hour).
Up to Monday’s close on the New York Stock Exchange (NYSE), SunEdison’s shares had fallen about 87% in the past 12 months.
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