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In its second acquisition on Sunday in the solar business, Reliance New Energy Solar Ltd, a wholly-owned unit of Reliance Industries Ltd, has signed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala and Sterling & Wilson Solar Ltd (SWSL) to acquire 40 per cent stake in SWSL through multiple transactions.
The deal involves a preferential allotment of 2.93 crore equity shares (equivalent to 15.46 per cent post preferential share capital) at a price of ₹375 a share and acquisition of 1.84 crore equity shares from SPCPL (equivalent to 9.70 per cent post preferential share capital) at a price of ₹375 per share, for a combined ₹1,790 crore.
This will be followed by an open offer to the public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9 per cent in accordance with SEBI Takeover Regulations, Reliance said in a statement.
Reliance New Energy Solar will hold 40 per cent of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required.
Reliance New Energy Solar Limited will have the right to nominate two members on the Board of the Company and the current promoter and promoter group shall have a right to nominate two individuals on the Board.
With 11-plus GW of solar turnkey projects executed globally and more than five decades of engineering experience, SWSL is a leading international EPC and O&M service provider in the renewables sector. The company has 3,000 staffs and presence across 24 countries, and it provides a comprehensive range of solar energy turnkey solutions including design, procurement, construction, project management and operations and management.
This partnership with SWSL will provide it access to world-class talent, engineering and project management skills and complement Reliance’s proven strengths in digital technology, engineering, and procurement and project execution – all key ingredients required to deliver high quality, cost-efficient and time-bound implementation of giga-scale green energy capacity in India and across the world, Reliance said in the statement.
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