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Adani Green Energy to Buy SB Energy India for $3.5 billion in Country's Largest Renewable Deal

Considering the IPO announcement of PharmEasy’s parent company API Holdings, the deal is likely to be announced soon, the report mentioned

Considering the IPO announcement of PharmEasy’s parent company API Holdings, the deal is likely to be announced soon, the report mentioned

SB Energy India is a joint venture between Japan-based SoftBank Group Corp and Bharti Group, who held 80 per cent and 20 per cent stake, respectively.

Adani Green Energy Limited on Wednesday said it has acquired 5 GW of renewable power portfolio from SB Energy India for a fully-completed enterprise evaluation (EV) of $3.5 billion, according to the regulatory statement. SB Energy India is a joint venture between Japan-based SoftBank Group Corp and Bharti Group, who held 80 per cent and 20 per cent stake, respectively.

SB Energy India has a total renewable portfolio of 4,954 MW spread across four states in India. The transaction marks the largest acquisition in the renewable energy sector in India, according to Adani Green Energy Limited.

“The target portfolio consists large scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW) and 7% wind capacity (324 MW),” the regulatory filing said.

“The portfolio comprises of 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,” it further added.

With this acquisition, Adani Green Energy Limited will have a total renewable capacity of 24.3 GW and operating renewable capacity of 4.9 GW, according to the company statement. “This acquisition demonstrates Adani Green Energy Limited’s intent to be the leader in sustainable energy transition globally and makes it one of the largest renewable energy platforms in the world,” it added.

Commenting on the agreement, Gautam Adani, chairman, Adani Group 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.”

“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,” he further added.

The was the fourth successive deal struck in the solar segment by Adani Green in recent times. Earlier, it acquired the domestic assets of Sterling and Wilson  and Toronto-based SkyPower Global.

“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,” said Masayoshi Son, Representative Director, corporate officer, chairman & chief executive officer of SoftBank Group Corp. said.

“Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold,” Sunil Bharti Mittal, chairman, Bharti Enterprises said.

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first published:May 19, 2021, 09:53 IST