Greenko Energy to buy Orange Renewables for $922 million

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Hyderabad | Published: June 5, 2018 4:02:17 AM

Greenko has achieved 3000 MW of operational portfolio and over 7 GW under-construction capacity and is well-funded to grow into a multi-gigawatt portfolio over the next few years.

greenko energy, orange renewables, solar power, wind powerRenewable energy company Greenko Energy has signed a definitive agreement to acquire AT Capital-backed Orange Renewables, Singapore, for a total enterprise value of 2 million. (IE)

Renewable energy company Greenko Energy has signed a definitive agreement to acquire AT Capital-backed Orange Renewables, Singapore, for a total enterprise value of $922 million. The deal comprises 907 MW of solar and wind assets and pipeline assets of over 500 MW. Besides, the company also announced its decision on a primary equity raising of $447 million from an affiliate of GIC and an entity that is wholly-owned by the Abu Dhabi Investment Authority (ADIA).

“The proposed acquisition of Orange Renewables assets is expected increase capacity, revenue, Ebitda growth and drive overall earnings growth potential for Greenko and its stakeholders. Indian energy markets are transitioning from deficit markets to demand-driven contracts requiring reliable, flexible and cost-competitive energy. Greenko is focussing in building integrated renewable energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quantity and cost,” Anil Chalamalasetty, managing director and CEO, Greenko said in a statement.

Following the deal, the company will add about 907 MW operating and near-completion assets to Greenko’s existing portfolio of over 3 GW operational capacity, taking the overall operational capacity to about 4 GW of well-diversified and derisked portfolio of wind, solar and hydro. The company’s overall under-construction capacity in addition to the 4 GW operational capacity is over 7 GW, taking its total operating capacity to about 11 GW, clearly establishing leadership position in the Indian renewable energy sector.

The deal is accretive to Greenko’s Ebitda upon closing, approximately $130 million accretive in the first full year after close, with additional accretion and growth anticipated thereafter. Greenko is focused on building utility scale assets with them being diversified on the basis of offtake, geography and technology. It intends to increase the installed capacity by developing and building new greenfield assets as well as making selective acquisitions which enhance shareholder value.

Greenko has achieved 3000 MW of operational portfolio and over 7 GW under-construction capacity and is well-funded to grow into a multi-gigawatt portfolio over the next few years.

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