According to Grant Thornton, driven by three high-value deals of over $500 million each with eight other deals, energy and natural resources sector topped the value chart in the three months of January-March 2020.
Shapoorji Pallonji Infrastructure Capital (SP Infra) will be selling five operational solar energy assets to global investment firm KKR for a total consideration of `1,554 crore, company said on Monday. The portfolio to be sold comprises 169 MW in Maharashtra and 148 MW in Tamil Nadu.
Mukundan Srinivasan, managing director of SP Infra, said, “This deal further demonstrates SP Infra’s continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for further growth in its businesses, and be the partner of choice for high-quality international investors like KKR.”
David Luboff, head (Asia Pacific Infrastructure) at KKR, said, “Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development”.
Sanjay Nayar, CEO, KKR India, added, “Given the government’s ambitious target of achieving 175GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.”
India is a key part of KKR’s Asia Infrastructure strategy, and this announced transaction is the Firm’s second investment in the country as part of its dedicated infrastructure strategy, company said. The transaction is subject to customary approvals.
The deals momentum has been high in the energy space of late. According to Grant Thornton, driven by three high-value deals of over $500 million each with eight other deals, energy and natural resources sector topped the value chart in the three months of January-March 2020.
Energy and natural resources formed 13% in terms of the overall deal value in the mergers and acquisition space, with $1,316 million worth of transactions. In the private equity space too, deals in the energy and natural resources space formed 15% of the deal value, with $728-million transactions.
Some of the notable deals during the quarter included Total SA making a strategic investment in Adani Green Energy, and Goldman Sachs and Varde Partners investing $570 million in RattanIndia Power which made it the biggest debt resolution deal by an international stressed asset funds in India and one of the biggest outside the insolvency resolution framework, without any change in management, according to Grant Thornton deal tracker report of April 2020.