Canadian Fund CDPQ To Buy 40% Stake In CLP India For Rs 2,600 Crore
CLP Group will transfer a 40 percent shareholding in CLP India for Rs 2,640 crore in cash from a Canandian institutional fund.
Canadian institutional fund Caisse de dépôt et placement du Québec - or CDPQ - is set to acquire a non-controlling stake in clean energy producer CLP India Pvt. Ltd, expanding its investments into India's power sector.
CLP Group will transfer a 40 percent shareholding in its wholly-owned subsidiary CLP India for Rs 2,640 crore in cash, the companies said in a joint statement today. The group will maintain the remaining 60 percent stake with itself.
CLP India - a subsidiary of CLP Holdings Ltd. which is listed on the Hong Kong Stock Exchange - is one of the largest foreign investors in the Indian power sector with a total committed investment of over Rs 14,500 crore, according to its website. This investment is spread across a portfolio that covers renewable energy, super-critical coal and gas fired generation, amounting to close to 3000 MW.
While the transaction expands CDPQ's investment in India's power sector, it is also meant to help CLP expand its transmission and distribution services.
"CLP India will seek to expand investments in low-carbon growth areas including renewable energy investments as well as non-generation business opportunities in transmission, distribution and other customer-focused businesses," the company said in the statement.
The transaction will now be subject to approval by shareholders and regulatory bodies.