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Greenko Energy Holdings has announced that it will acquire Orange Renewables Singapore for a total enterprise value of $922 million. Orange has 907 MW of solar and wind assets and pipeline assets of over 500 MW.
The deal will add about 907 MW operating and near completion assets to Greenko’s existing portfolio of over 3 GW operational capacity taking the overall operational capacity to about 4 GW of well-diversified and de-risked portfolio of wind, solar and hydro.
“Greenko is focusing on building integrated renewable energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quantity and cost,” said Anil Chalamalasetty, Managing Director and Chief Executive Officer, Greenko.
Greenko's overall under-construction capacity in addition to the 4 GW operational capacity is over 7 GW taking its total operating capacity to about 11 GW.
The company said, “We believe the combination of our existing hydro, solar and wind projects with 24/7 renewable power strategy to help Indian power distribution companies is the right next step in our growth trajectory. The proposed acquisition of Orange Renewable assets is expected to augment capacity, revenue, EBITDA growth and drive overall earnings growth potential for Greenko and its stakeholders.”
Greenko has also announced its decision to raise $447 million in equity funding from an affiliate of Greenko Investment Company and an entity that is ultimately wholly-owned by the Abu Dhabi Investment Authority.
Mahesh Kolli, Founder, President and Joint Managing Director, Greenko, told BusinessLine, “Our existing investors continue to repose faith in the company business and its plans. Thus far they have invested about $1.5 billion in the company. So there is no need to consider other options to raise funds to fuel our growth.”
Kolli said: “The long-term objective is to develop a robust integrated renewable energy company that provides firm power. Our goal is to take up the capacity to 10 GW.”
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