Adani Green Energy has entered into share purchase agreement to acquire 100 per cent equity capital of SB Energy Holdings Ltd (SBEHL).
The first share purchase agreement is with Softbank Group Capital Ltd, to acquire 80 per cent equity capital in SBEHL while the other is with Bharti Global Ltd (BGL) to acquire 20 per cent equity capital in SBEHL.
(It follows that Softbank Group Capital Ltd currently owns 80 per cent of the equity capital of SB Energy Holdings Ltd while the remaining 20 per cent is held by Bharti Global Ltd.)
The transaction will have an enterprise value of around Rs.26,000 crore and is expected to complete by August 2021.
Rationale
Post acquisition, Adani Green Energy will have renewable energy capacity of 24,294 mw including 14,874 mw awarded and under implementation, and 4,500 mw where Adani Green Energy has been declared L1 bidder. This acquisition will thus help Adani Green Energy Ltd to achieve its target of owning 25 GW of renewable energy capacity, four years ahead of the targeted timeline.
Green portfolio of 5 GW
SBEHL has a portfolio of 4,954 mw worth of renewable energy projects (under construction: 3,554 mw; commissioned: 1,400 mw). These projects are held by step-down wholly-owned Indian subsidiaries of SBEHL. The 4,954-mw portfolio is dominated by 4,180 mw of solar capacity, including 1,400 mw in operation.
The renewable energy projects of SBEHL are spread over Rajasthan, Andhra Pradesh, Karnataka and Madhya Pradesh. All projects are backed by long-term power purchase agreements with NTPC, SECI, NHPC, etc.
UK-based
It may be mentioned that SBEHL is a private limited company, incorporated in the United Kingdom. Its principal activity is “making investment in business relating to renewable energy development.” SBEHL, as of March 31, 2021, had an equity capital of Rs.5,439 crore and it had clocked revenues of Rs.1,015 crore in FY21.
