Adani Green Energy looking forward to buy Soft Bank's 80% stake in SB Energy
As per news source, Adani Green Energy Ltd. (AGEL) is eyeing on to buy the SoftBank Group Corp.’s majority stake in solar power producer SB Energy.
With this, the plan to sell SoftBank’s entire 80% stake in SB Energy to Canada Pension Plan Investment Board (CPPIB) for an estimated $525 million collapsed. Sources said that Adani Green has begun due diligence of SB Energy.
SB Energy has a portfolio of 7.7 gigawatts (GW) in India. Bharti Enterprises owns the remaining 20% stake in the company. Bank of America and Barclays were handling the sale process. France’s Total has invested $2.5 billion for acquiring a 50% stake in 2.35GW operating solar assets of AGEL and a 20% stake in AGEL. With 3.47GW operational capacity and 15.24GW portfolio, the Adani-Total JV plans to commission 25GW by 2025.
The diversified Adani Group has been on an acquisition spree to grow its green energy portfolio. It recently bought Sterling and Wilson’s 75 megawatts (MW) operating solar projects and Toronto-based SkyPower Global’s 50MW solar project in Telangana. Adani Enterprises has also partnered EdgeConneX to develop 1GW of data centre capacity over the next decade that will be powered by renewable energy. The valuation of SB Energy in the proposed deal with CPPIB was lower than the one expected by the renewable energy industry. SoftBank invested more than $800 million in the business in the past five years. The stake sale efforts followed SB Energy dropping its plan in July 2020 to raise $600 million through a dollar bond.
SoftBank’s planned deal with CPPIB was in the works for around a year, with CPPIB placing several pre-conditions for SoftBank before finalizing the transaction.
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