Nasdaq-listed Renew Energy Global on Friday said its promoters–founder & CEO Sumant Sinha, Abu Dhabi’s Masdar, Canada Pension Plan Investment Board, and Abu Dhabi Investment Authority–who are looking to take the company private, have revised upwards their offer to the remaining shareholders.
The consortium has revised its bid to $880 million or $8 per share from $700 million or $7.07 they offered in December last year. The revised bid values the company at around $3.2 billion or about Rs 27,000 crore. The consortium has collective voting rights of 64% in ReNew.
The bid to take the company private is a precursor to taking ReNew public in India, according to earlier reports.
ReNew is the second-largest renewable company in the country after Adani Green in terms of total installed capacity. It has an operational capacity of 11.2 GW.
“Our due diligence investigation has allowed us to assess the performance of the company and its outlook and refine our view on valuation. On that basis, the consortium is prepared to increase its offer price to $8.00 per share, payable in cash, for the entire issued and to be issued share capital of the company not already owned by the members of the consortium,” the consortium said in a mail to the company.
“The revised bid represents an increase of $0.93 per share, equivalent to 13.2%, from the initial non-binding proposal dated December 10,” ReNew said in the release.
The final non-binding offer represents a 26.2% premium versus the undisturbed share price of $6.34 as on December 10, 2024, and a 38.9% premium compared to the 30-day volume-weighted average price of $5.76 per share.
The ReNew board has already formed a special committee led by Manoj Singh, the lead independent director, and having six independent non-executive directors to consider the proposals received from the consortium.
The special committee is in the process of evaluating the final non-binding offer alongside its financial adviser, Rothschild & Co and legal counsel, Linklaters said. “Active discussions with the consortium remain ongoing and the special committee will provide an update to the market as soon as reasonably practicable,” it said.