Adani Green Energy has announced it is acquiring SB Energy’s 5 GW India renewable power portfolio for a fully completed EV of $3.5 billion.
''Adani Green (AGEL) has signed definitive agreements for 100% acquisition of SB Energy Holdings Limited. SB Energy India is a joint venture between Japan-based SoftBank Group Corp (80%) and Bharti Group (20%) and houses 4,954 MW of renewable assets in India'', the company said in an exchange filing.
SB Energy India is a joint venture between Japan-based SoftBank Group Corp and Bharti Group. It houses 4,954 MW of renewable assets in India.
At 9.54 AM, Adani Green Energy's share price was up 2.90 percent at Rs 1,233.85 apiece.
On May 19, the share purchase agreement was signed for acquisition of 100 percent interest in SB Energy from SoftBank Group and Bharti Group, who held 80 percent and 20 percent stake, respectively.
According to a release issued by Adani Renewables, SB Energy India has a total renewable portfolio of 4,954 Mega Watt (MW) spread across four states in India. The transaction marks the largest acquisition in the renewable energy sector in India. The transaction values SB Energy India at an enterprise valuation of approximately $3.5 billion.
"The target portfolio consists of large scale utility assets with 84 percent solar capacity (4,180 MW), 9 percent wind-solar hybrid capacity (450 MW) and 7 per cent wind capacity (324 MW). The portfolio comprises 1,400 MW operational solar power capacity and a further 3,554 MW is under construction. All projects have 25-year PPAs with sovereign rated counterparties such as Solar Energy Corporation of India Ltd. (SECI), NTPC Limited and NHPC Limited," the release said.
The operating assets forming part of the portfolio are primarily solar park based projects and have been built following best in class governance, project development, construction, and operations and maintenance practices, resulting in this being one of the highest quality renewable portfolios in the country.
With this acquisition, AGEL will achieve a total renewable capacity of 24.3 Gigawatt (GW) and an operating renewable capacity of 4.9 GW. Gautam Adani, Chairman, Adani Group, tweeted about the acquisition.
According to the statement, Adani said, “This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030.''
He said, "This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world's largest solar player by 2025 and thereafter the world's largest renewable company by 2030."
Chairman and Chief Executive Officer (CEO) of SoftBank Group Corporation Masayoshi Son 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 believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India's growth," he said.
Chairman of Bharti Enterprises, Sunil Bharti Mittal said that he is delighted that SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India.
(With ANI inputs)