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Adani Green Energy Ltd (AGEL) on Monday informed that it has completed the acquisition of SB Energy Holdings Ltd (SB Energy India) in an all-cash deal for which definitive agreements were signed in May this year.
The transaction puts the fully completed enterprise valuation of $3.5 billion (approx ₹26,000 crore). This marks the largest acquisition in the renewable energy sector in India, claimed Adani Group in a statement.
SB Energy India, which was a 80:20 joint venture between Japan-based SoftBank Group Corp and Bharti Group now becomes 100 per cent subsidiary of AGEL.
Transaction completed in less than four months with due diligence, statutory clearances and handover of the assets.
Recently, Adani Group Chairman Gautam Adani had indicated the Group's intentions to invest over $20 billion over the next 10 years in renewable energy generation. “This transaction takes us closer to becoming the global leader in renewables,” said Vneet S. Jaain, MD & CEO, AGEL.
5GW renewable assets
SB Energy India has 5 GW renewable assets across four States in India through its SPVs. The acquired portfolio comprises around 100 per cent sovereign rated counterparties.
The portfolio holds 1,700 MW of operational renewable assets, 2,554 MW of assets under construction and 700 MW of assets near construction. Average tariff for the portfolio is ₹ 2.75 per unit.
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), AGEL said in a statement.
Split across 15 projects with an average project size of 330 MW, Adani claimed this as one of India’s highest quality renewable portfolios, with many of the assets being solar park-based projects and constructed using best-in-class governance, project development, construction and operations and maintenance standards.
Also read: AGEL arm to acquire 40 MW solar asset in Odisha
The acquisition boosts AGEL’s operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW implying a four-fold growth locked-in.
AGEL’s counterparty mix for its overall portfolio of 19.8 GW is further reinforced with 87% sovereign rated counterparties.
AGEL shares gained over 1 per cent in Monday trades at ₹1,167.45 on BSE.
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