Adani Green Completes SB Energy’s Acquisition

Adani Green Energy Ltd. has completed the acquisition of SB Energy Holdings Ltd., four months after signing the pact in a push for cleaner fuels to curb emissions.

The all-cash deal pegs SB Energy India at an enterprise value of $3.5 billion (Rs 26,000 crore), the company majority-owned by billionaire Gautam Adani said in an exchange filing, adding it marks the largest acquisition in the renewable energy sector in the country.

SB Energy India is now a 100% subsidiary of Adani Green. Earlier, it was an 80:20 joint venture between Japan-based SoftBank Group Corp. and Bharti Group, the filing said.

Adani Green on May 18 had signed a share-purchase agreement to acquire SB Energy India.

What Adani Green Gets

SB Energy India has 5-gigawatt renewable assets across four states in India through its special purpose vehicles. The portfolio, according to the filing, holds 1,700 megawatt of operational renewable assets, 2,554 MW of assets under construction and 700 MW of assets near construction.

Its solar capacity accounts for 84% of the portfolio (4,180 MW), wind-solar hybrid capacity accounts for 9% (450 MW) and wind capacity accounts for 7% (324 MW).

The acquisition, according to the filing, boosts Adani Green’s operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW. It’s essentially a 46% rise in operational capacity.

“This transaction takes the company closer to becoming the global leader in renewable,” Vneet S Jaain, managing director and chief executive officer at Adani Green, was quoted as saying in the filing. “The addition of these high-quality large utility-scale assets from SB Energy India demonstrates Adani Green Energy’s intent to accelerate India’s efforts to transition towards a carbon neutral future.”

Shares of Adani Green were trading 1.8% higher as of 11:20 a.m. on Monday compared with a 1.1% gain in the benchmark Nifty 50.