Adani Green Energy Limited Completed India’s Largest Renewables M&A Deal
The addition of these high-quality large utility-scale assets from SB Energy India demonstrates Adani Green Energy’s intent to accelerate India’s efforts to transition towards a carbon neutral future
On 4th October, Adani Green Energy Limited (AGEL) announced that it has completed the acquisition of SB Energy Holdings Ltd. (SB Energy India), in a deal worth USD 3.5 billion. The acquisition is India’s largest renewable M&A deal and has increased operation capacity of Adani Green Energy Limited (AGEL) by 46%.
Mr. Vneet S. Jaain, MD & CEO, AGEL said, “This transaction takes us closer to becoming the global leader in renewables. The addition of these high-quality large utility-scale assets from SB Energy India demonstrates Adani Green Energy’s intent to accelerate India’s efforts to transition towards a carbon neutral future. Our renewable energy foundations will enable an entire ecosystem of new industries that can be expected to catalyse job creation in multiple sectors.”
SB Energy India has 5GW renewable assets across four states in India through its SPVs. Its portfolio holds 1,700 MW of operational renewable assets, 2,554 MW of assets under construction and 700 MW of assets near construction. Solar capacity holds 84% share in SB Energy India’s portfolio with a production capacity of 4,180 MW, wind-solar hybrid capacity accounts for 9% at 450 MW, and wind capacity accounts for 7% at 324 MW.
SB Energy India’s energy production capacity is split across 15 projects with an average project size of 330 MW, and it is one of India’s highest quality renewable portfolios, with many of the assets being solar park-based projects and constructed using best-in-class governance, project development, construction and operations and maintenance standards.
The acquisition has increased AGEL’s operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW implying a 4x growth locked-in. AGEL’s counterparty mix for its overall portfolio of 19.8 GW is further reinforced with 87% sovereign rated counterparties. AGEL also ensures adherence to globally recognised principles such as UN Sustainable Development Goals and Science Based Targets initiative, and its ESG disclosures are aligned with GRI standards, CDP disclosure and TCFD recommendations.
A 80:20 joint venture between Japan-based SoftBank Group Corp and Bharti Group, SB Energy India is now a 100% subsidiary of AGEL after the completion of the acquisition deal. The transaction pegs SB Energy India at an enterprise valuation of USD 3.5 billion (~Rs. 26,000 Cr) and makes it, the largest acquisition in the renewable energy sector in India.
Last week, Adani Group Chairman Gautam Adani announced that the Group would invest over USD 20 billion across the next 10 years in renewable energy generation.
