ReNew Power Buys Ostro Energy in India's Largest Renewables Deal
The company is said to have paid 40 percent in equity and the rest in debt for acquiring Actis LLP-backed Ostro Energy, the people said, asking not to be identified as the information isn’t public. ReNew Power spokesman Pradeep Wadhwa declined to comment on the deal value.
ReNew Power, backed by investors such as Goldman Sachs Group Inc., Japan’s Jera Co., Abu Dhabi Investment Authority and Canada Pension Plan Investment Board, will become India’s largest renewable energy company after the acquisition with combined assets of more than 5.6 gigawatts. More than 65 percent of the assets of the combined entity are already operational, ReNew Power said in a statement.
Canada Pension Plan has invested an additional $247 million to support ReNew Power’s financing for Ostro Energy acquisition. As a result, CPPIB’s combined investment in ReNew Power stands at $391 million. Earlier this year, it had invested $144 million, the company said.
Prior to this deal, Tata Power Co. Ltd’s acquisition of Welspun Renewable Energy Pvt. in 2016 at an enterprise value of 92.49 billion rupees ($1.4 billion) was India’s largest green power deal.
India aims to install 175 gigawatts of renewable energy capacity by 2022.
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