In a deal worth $3.5 billion, Adani Green acquires SB Energy India
With the successful completion of the acquisition SB Energy India has become a 100 percent subsidiary of AGEL.
Adani Green Energy Ltd (AGEL) on Monday announced successful completion of the acquisition of SB Energy Holdings Ltd (SB Energy India) in an all-cash deal. The definitive agreements for the same were signed on 18 May 2021.
Through this deal, SB Energy India has become a 100 percent subsidiary of AGEL. It was formerly an 80:20 joint venture between Japan’s SoftBank Group and India’s Bharti Group.
The portfolio was acquired entirely from sovereign-rated counterparties. According to the company press release, the portfolio has an average tariff of INR 2.75 per unit.
SB Energy India’s enterprise value, according to the report, amounts to about INR 26,000 crore, making it India’s largest acquisition in the renewable energy sector in India.
Vneet S Jaain, managing director and CEO, AGEL stated that the acquisition will take us closer to becoming the global leader in the renewables space.
He further stated that the acquisition of these high-quality large utility assets from SB Energy India will accelerate India’s transition towards carbon-neutrality. He also pointed out that in addition to enabling an entire ecosystem of new industries, we are confident our renewable energy foundations will spur job creation in multiple sectors.
Through this acquisition, the company’s operational portfolio now stands at 5.4 GW and its overall portfolio at 19.8 GW, implying a four-fold increase in capacity. AGEL’s counterparty mix for its overall portfolio of 19.8 GW is further reinforced with 87 percent sovereign-rated counterparties.
SB Energy has 5 GW of renewable assets in India spread across four states. It is estimated that 84% of the portfolio’s capacity is solar power (4180 MW), 9% is wind-solar hybrid (450 MW) and 7% is wind (324 MW). The portfolio includes 1,700 MW of renewable energy assets that are operational, along with 2,554 MW under construction and 700 MW nearing completion.
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