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ReNew Power Private Limited has completed its previously announced business combination with RMG Acquisition Corporation II. With this business combination, RMG II has become a wholly-owned arm of ReNew Energy Global , the company said Monday in a release. Commencing at the open of trading on August 24, 2021, ReNew’s Class A ordinary shares and ReNew’s warrants are likely to begin trading on The Nasdaq Stock Market LLC (Nasdaq) under the symbols RNW and RNWWW respectively.
As a result of this transaction ReNew has received $610 million in net proceeds, consisting of funds from RMG II’s former trust account and from a private placement in public equity (PIPE), after redemptions and transaction fees. The PIPE is anchored by institutional investors including funds and accounts managed by BlackRock, BNP Paribas Energy Transition Fund, Mr. Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer Partners. ReNew will use the proceeds to accelerate its growth, fund operations and pay off debt.
ReNew’s senior management team -- including Sumant Sinha (Chief Executive Officer) and D Muthukumaran (Chief Financial Officer) -- will continue to lead the combined company. ReNew’s Board of Directors will be comprised of 10 members, six of whom are “independent directors” as defined in the Nasdaq listing standards and applicable US Securities and Exchange Commission (SEC) rules. The Board of Directors will be led by Chairman Sumant Sinha and will also include Robert Mancini, CEO of RMG II.
The transaction was unanimously approved by RMG II’s Board of Directors and was approved at the extraordinary general meeting of RMG II’s shareholders held on August 16, 2021.
“Approximately 88 per cent of the votes cast on the business combination proposal at the Extraordinary General Meeting were in favor of approving the business combination. RMG II’s shareholders also voted to approve all other proposals presented at the Extraordinary General Meeting,” the release added.
“The completion of our business combination with RMG II begins a new era for our company and is a great step forward for enabling further decarbonisation of the Indian power sector,” Sinha said.
“ReNew is now well-positioned to maintain and expand its leadership position as the largest renewable power generation company in India, and lead decarbonisation efforts in one of the world’s largest and most dynamic economies,” said Mancini.
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