Mumbai: Gautam Adani led Adani Green Energy Limited (AGEL) has agreed to accumulate a 100% stake in SB Energy India with a renewable energy portfolio of 4954 megawatts (MW) from SBG (80%) and Bharti Group (20%) for an enterprise value of $3.5 billion (Rs 26,000 crore), making it the most important acquisition within the renewable energy sector in India.
The target portfolio consists of large-scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW), and seven wind capacity (324 MW). SB Energy Holdings reported revenues of Rs 1015 crore for FY21.
The portfolio comprises 1,400 MW operational solar energy capacity, and an extra 3,554 MW is under construction.
Commenting on the deal, Mr. 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. India, with no doubt, has been one of the few nations that have accelerated its global commitment towards global climate change, and that we shall do our part to execute on the guarantees made. The renewable energy platform that we are building will lay the inspiration for attracting several other global industries that are increasingly looking to scale back their carbon footprint (as well as lay the inspiration for opening up adjacent platforms that include Hydrogen and Storage). We are well on our thanks to achieving our stated solar portfolio targets four years before the deadline we set for ourselves. the standard of assets that SoftBank and therefore the Bharti Group have built are excellent, and that I complement their efforts to support India’s renewable energy transition. We are proud to require their legacy forward.”
All projects have 25-year PPAs with sovereign-rated counterparties like solar power Corporation of India Ltd. (SECI), NTPC Limited, and NHPC Limited.
The operating assets forming a part of the portfolio are primarily solar park-based projects. they need been built following best-in-class governance, project development, construction, and operations and maintenance practices, leading to this being one among the very best quality renewable portfolios within the country.
Mr. Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group Corp., said, “We established SB Energy India in 2015 with the goal of making a market-leading clean energy company to assist fuel India’s growth with clean and renewable sources of energy. We are immensely pleased with all that we’ve accomplished. As SBG continues our transition to a worldwide investment company focused on accelerating the deployment of AI, we believe now’s the proper time to usher in the Adani Group to assist drive subsequent phase of SB Energy India’s growth.”
With this acquisition, AGEL will achieve a complete renewable capacity of 24.3 GW and a renewable operating capacity of 4.9 GW.
This acquisition demonstrates AGEL’s intent to be the leader in sustainable energy transition globally and makes it one of the most important renewable energy platforms within the world. The closing of the transaction is subject to customary approvals and conditions.
Mr. Sunil Bharti Mittal, Chairman, Bharti Enterprises, said: “I am delighted that SB Energy has found an honest home to hold on its pioneering journey of building a foremost renewable energy company in India. Adani Group has an impressive diary of building a green energy powerhouse that can get further acceleration with the mixture of SB Energy into its fold. I’m glad that Bharti could play a constructive role in partnership with SoftBank.”