New Delhi: In the biggest acquisition in India’s renewable power sector, Adani Green Energy Ltd (AGEL) announced on Wednesday it is acquiring SB Energy India from Softbank of Japan and India’s Bharti Group to add 4,954 MW to its renewable power portfolio.
The transaction values SB Energy India at an enterprise valuation of approximately USD 3.5 billion. The closing of the transaction is subject to customary approvals and conditions.
The target portfolio consists of large-scale utility assets with 84 percent solar capacity (4,180 MW), 9 percent wind-solar hybrid capacity (450 MW), and 7 percent wind capacity (324 MW), media reports said.
“This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030. We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves,” said Gautam Adani, Chairman of Adani Group, in a statement.
The portfolio comprises 1,400 MW operational solar power capacity and another 3,554 MW currently under construction. All projects have 25-year power purchase agreements (PPAs) with sovereign-rated counterparties such as Solar Energy Corporation of India Ltd. (SECI), NTPC Ltd, and NHPC Ltd.
The operating assets forming part of the portfolio are primarily solar park-based projects. With this deal, AGEL will achieve a total renewable capacity of 24.3 GW and an operating renewable capacity of 4.9 GW.
Following this deal, SB Energy would exit the Indian market and will no longer participate in any project tenders in India, according to reports.
SB Energy had been looking to sell its portfolio for the past two years and had asked the Government of India for dollar-based tariffs and the award of large capacities. But these requests were not accepted.
The last such large deal was when Tata Power acquired renewable energy assets of Welspun Energy for nearly Rs 10,000 crore in 2016.
“We established SB Energy India in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy. We are immensely proud of all that we have accomplished,” said Masayoshi Son, Representative Director, Corporate Officer, Chairman, and CEO of Softbank Group Corp.
Sunil Bharti Mittal, Chairman of Bharti Enterprises, said: “I am delighted that SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India.”
(VP)