Adani Green Energy Ltd (AGEL) will acquire the entire stake in SB Energy India for $3.5 billion (Rs 25,500 crore) from SoftBank (SBG) and the Bharti group.
The transaction marks the largest acquisition in the renewable energy sector in India.
SB Energy India has a total renewable portfolio of 4,954 MW spread across four states.
The transaction gives SB Energy an enterprise valuation of around $3.5 billion. The acquisition is expected to be completed by August this year. The company posted revenues of Rs 1,015 crore for the period ended March 31, 2021.
AEGL said the acquisition will enable it to achieve the targeted renewable portfolio of 25 GW four years ahead of the expected timeline.
The target portfolio consists of large scale utility assets with 84 per cent solar capacity (4,180MW), 9 per cent wind-solar hybrid capacity (450MW) and 7 per cent wind capacity (324MW).
There is a 1,400MW operational solar power capacity and a further 3,554MW is under construction.
All projects have 25-year power purchase agreements (PPAs) with sovereign rated counter-parties such as Solar Energy Corporation of India (SECI), NTPC and NHPC.
“The renewable energy platform that we are building will lay the foundation for attracting several other global industries that are increasingly looking to reduce their carbon footprint,” said Gautam Adani, chairman, Adani Group.
Shares of AEGL rose 3.78 per cent or Rs 45.35 to close at Rs 1,244.30 on the BSE following the announcement.
