The proposed $5 billion acquisition of Singapore-based Equis Energy by New York-based Global Infrastructure Partners (GIP) is not expected to result in Equis’ Indian renewable assets to be put up for sale. Rejecting recent claims that Equis was looking for buyers for its Indian solar and wind projects, Roberto De Vido, communications director, Equis, told FE that it “was never looking to sell pieces” of its business. “The aim was always to restructure 100% of Equis Energy across every country,” Roberto De Vido, communications director, Equis, added. Equis’ global renewable energy capacity comprise 11,135 MW, with about 900 MW based in India.
Equis said it is highly unlikely that GIP would sell its Indian renewable assets as the latter is enthusiastic about the country’s renewable energy market. “We look forward to continuing the Equis Energy success story in the years to come and to supporting new growth opportunities in one of the most promising renewable energy markets in the world,” Adebayo Ogunlesi, chairman and managing partner, GIP, said. GIP has agreed to acquire Equis Energy—the renewable energy portfolio of Equis Funds Group—for $5 billion. GIP will be buying Equis Energy in partnership with Canada-based PSP Investments and CIC Capital – a unit of state-owned China Investment Corporation. The deal, which includes liabilities worth $1.3 billion, is expected to close in the first quarter of 2018. The company’s largest Indian projects include 130 MW solar project in Telangana and 108 MW wind project in Fatanpur, Madhya Pradesh. It is also constructing a 130 MW solar plant in Bagalkot, Karnataka. Hydreq, a unit of Equis Energy, holds majority ownership in two hydroelectric plants in Sikkim with total capacity of about 200 MW. The Dans Group is Equis’ partner in these two projects.
Bloomberg New Energy Finance (BNEF) had said earlier that China and India alone are a $4 trillion opportunity for the global energy sector. India would account for 11% of total regional investment over 2017-40, with wind and solar both accounting for around a third of total investment, BNEF had added. The top project merger and acquisition deal in the solar sector in the quarter ended September 30 was of IDFC Alternatives acquiring a portfolio of seven Indian solar projects for an enterprise value of $300 million.