Companies

Greenko completes Orange Renewables acquisition; in talks to buy Skeiron

V Rishi Kumar Hyderabad | Updated on October 08, 2018 Published on October 08, 2018

Anil Kumar Chalamalasetty, Chairman, Greenko Group

Renewable energy player Greenko Group, through Greenko Dutch BV, has completed the acquisition of Delhi-based Orange Renewables, and entered into a purchase agreement for Skeiron Green Renewables.

Together, both deals will add about 1,300 MW of operating and nearly-completed wind and solar assets, and increase Greenko’s overall operational capacity to about 4.5 GW of wind, solar and hydro power.

Greenko-Orange vision

“The proposed acquisition of Skeiron and completion of Orange Renewable assets are expected to drive capacity, revenue, EBITDA and overall earnings growth potential for Greenko and its stakeholders. Greenko is focused on building integrated renewable energy assets with storage, which can compete with conventional energy like thermal in quality, quantity and cost,” said Anil Chalamalasetty, Managing Director and Chief Executive Officer, Greenko.

The deal is estimated to be about $1.4 billion, with $850 million for Orange Renewables from Singapore-based AT Capital Group. And $530 million will be for Skeiron, promoted by Tulsi Tanti of Suzlon group, with 385 MW capacity.

Both these assets were to be earlier acquired by ReNew Power but the deal fell through.

Other projects

Greenko has under-construction capacity of over 8 GW, which will take its total operating capacity to about 12 GW, establishing its leadership in the country’s new energy sector.

The deal is expected to add $200 million to Greenko’s EBITDA (Earnings before interest, taxes, depreciation, and amortization) in the first year, with further accretion and growth anticipated.

It is the first company in the country to receive licenses to build and operate integrated renewable energy projects from Andhra Pradesh and Karnataka with an overall capacity of over 8 GW.

Greenko has seen big ticker investments from GIC of Singapore and Abu Dhabi Investment Authority — both sovereign funds.

Published on October 08, 2018
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