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3.5 billion – India’s largest renewables M&A transaction
Ahmedabad, May 19, 2021: Adani Green Energy Limited (AGEL), today signed sharepurchase agreements for the acquisition of 100% interest in SB Energy India from SBG(80%) and Bharti Group (20%). SB Energy India has a total renewable portfolio of 4,954 MWspread across four states in India. The transaction marks the largest acquisition in therenewable energy sector in India. The transaction values SB Energy India at an enterprisevaluation of approximately USD 3.5 billion.
The target portfolio consists large scale utility assets with 84% solar capacity (4,180 MW),9% wind-solar hybrid capacity (450 MW) and 7% wind capacity (324 MW). The portfoliocomprises of 1,400 MW operational solar power capacity and a further 3,554 MW is underconstruction. All projects have 25 year PPAs with sovereign rated counterparties such asSolar Energy Corporation of India Ltd. (SECI), NTPC Limited and NHPC Limited. Theoperating assets forming part of the portfolio are primarily solar park based projects and havebeen built following best in class governance, project development, construction, andoperations and maintenance practices, resulting in this being one of the highest qualityrenewable portfolios in the country.
With this acquisition, AGEL will achieve total renewable capacity of 24.3 GW (1) and operatingrenewable capacity of 4.9 GW. This acquisition demonstrates AGEL’s intent to be the leaderin sustainable energy transition globally and makes it one of the largest renewable energyplatforms in the world. The closing of the transaction is subject to customary approvals andconditions.
Mr. Gautam Adani, Chairman, Adani Group, said: “This acquisition is another step towardsthe vision we stated in January 2020, wherein we laid out our plans to become the world’slargest solar player by 2025 and thereafter the world’s largest renewable company by 2030.India, without any doubt, has been one of the few nations that has accelerated its globalcommitment towards climate change and we intend to do our part to execute on the promisesmade. The renewable energy platform that we are building will lay the foundation forattracting several other global industries that are increasingly looking to reduce their carbonfootprint (as well as lay the foundation for opening up adjacent platforms that includeHydrogen and Storage). We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves. The quality of assets that SoftBank and the Bharti Group have built are excellent and I compliment their efforts to support India’s renewable energy transition. We are proud to take their legacy forward.”
Mr. Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group Corp., said: “We established SB Energy India in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy. We are immensely proud of all that we have accomplished. As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth.”
Mr. Sunil Bharti Mittal, Chairman, Bharti Enterprises, said: “I am delighted that SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India. Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold. I am glad that Bharti could play a constructive role in partnership with SoftBank.”
