AGEL buys SB Energy India in $3.5 bn deal2 min read . Updated: 04 Oct 2021, 10:30 AM IST
- Adani Green Energy said it was an all-cash deal for which definitive agreements were signed on 18 May
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NEW DELHI : Adani Green Energy Ltd (AGEL) has completed the acquisition of Japan’s SoftBank Group Corp.’s and Bharti Enterprises Ltd-owned solar power producer SB Energy India for an enterprise value of $3.5 billion, AGEL said in a statement on Monday.
SB Energy India has a total renewable portfolio of 5 gigawatt (GW) spread across four states in India.
“Adani Green Energy Ltd (AGEL), the world's largest solar power developer, successfully completed the acquisition of SB Energy Holdings Ltd (SB Energy India) in an all-cash deal for which definitive agreements were signed on 18 May 2021," the statement said.
“The portfolio holds 1,700 MW of operational renewable assets, 2,554 MW of assets under construction and 700 MW of assets near construction2. Solar capacity accounts for 84% of the portfolio (4,180 MW), wind-solar hybrid capacity accounts for 9% (450 MW) and wind capacity accounts for 7% (324 MW), the statement added.
AGEL recently raised $750 million through a green bond to fund the equity for its under-construction projects. There is a growing interest in India’s green economy. Royal Dutch Shell is in talks with state-run Convergence Energy Services Ltd (CESL) to invest $500 million in its decentralized solar business as reported by Mint on Monday.
“The value accretive acquisition brings AGEL’s operational portfolio to 5.4 GW and overall portfolio to 19.8 GW," the statement said.
AGEL recently announced that it will acquire a 40 megawatt (MW) operational solar project from Essel Green at an enterprise value of Rs219 crore.
“With this deal, SB Energy India is now a 100% subsidiary of AGEL. Earlier, it was a 80:20 joint venture between Japan-based SoftBank Group Corp and Bharti Group. The transaction pegs SB Energy India at an enterprise valuation of USD 3.5 Bn (~Rs. 26,000 Cr) and marks the largest acquisition in the renewable energy sector in India," the statement said.
France’s Total has invested $2.5 billion for acquiring a 50% stake in 2.35GW operating solar assets of AGEL and a 20% stake in AGEL. The Adani-Total JV plans to commission 25GW by 2025. This comes in the backdrop of India’s solar and wind generation recording an all-time high of 43.1GW on 27 July. India has also crossed the 100 GW milestone of installed renewable energy capacity.
"Just last week, Adani Group Chairman Gautam Adani had announced that the Group would invest over 20 Bn dollars across the next 10 years in renewable energy generation," the statement added.
India‘s installed renewable energy capacity is 147.05 GW, including hydropower projects of 46.37 GW. The country has installed solar and wind energy capacity of 100.68 GW with India’s solar and wind generation recording an all-time high of 43.1 GW on 27 July. India has reached 38.5% of its installed power capacity from non-fossil fuels and this will go up to 66% by 2030, according to the government.
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