In one of the largest acquisitions in the renewable energy sector in India, Adani Green Energy Limited (AGEL) is set to acquire 100% interest in SB Energy India from Softbank Group (80%) and Bharti Group (20%). The transaction values SB Energy India at an enterprise valuation of approximately $3.5 billion.
The two sides on Wednesday signed share purchase agreements for the deal. SB Energy India has a total renewable portfolio of 4,954 MW spread across four states in India. The target portfolio consists large scale utility assets with 84 per cent solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW) and 7 per cent wind capacity (324 MW). The portfolio comprises 1,400 MW operational solar power capacity and a further 3,554 MW is under construction.
All projects have 25 year PPAs with sovereign rated counterparties such as Solar Energy Corporation of India Ltd (SECI), NTPC Limited and NHPC Limited. The operating assets forming part of the portfolio are primarily solar park based projects and have been built following best in class governance, project development, construction, and operations and maintenance practices, resulting in this being one of the highest quality renewable portfolios in the country, AGEL said in a statement.
With this acquisition, AGEL will achieve total renewable capacity of 24.3 GW and operating renewable capacity of 4.9 GW. AGEL said this makes it one of the largest renewable energy platforms in the world. The closing of the transaction is subject to customary approvals and conditions, the company said.
Gautam Adani, Chairman, Adani Group, said: "The renewable energy platform that we are building will lay the foundation for attracting several other global industries that are increasingly looking to reduce their carbon footprint (as well as lay the foundation for opening up adjacent platforms that include Hydrogen and Storage)."
"We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves. The quality of assets that SoftBank and the Bharti Group have built are excellent and I compliment their efforts to support India's renewable energy transition. We are proud to take their legacy forward."
Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group Corp, said: "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. As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India's growth."
AGEL, a part of India-based Adani Group, has one of the largest global renewable portfolios with 19.3 GW of operating, under-construction and awarded projects, and locked-in growth projects catering to investment-grade counterparties.