Japan’s Orix to Buy $980 Million Stake in India’s Greenko Energy
Orix will transfer its entire wind power generation business in India to Greenko, the company said in a statement Friday.
(Bloomberg) -- Orix Corp. has agreed to buy a roughly 20% stake in Indian renewable energy developer Greenko Energy Holdings for $980 million, the Japanese conglomerate’s biggest investment in the sector overseas.
Under the deal terms, the Tokyo-based company will acquire new shares along with existing stock from Greenko founders. It will transfer its entire wind power generation business in India to Greenko, Orix said in a statement Friday.
“India is a big and attractive market -- power demand is growing,” Hidetake Takahashi, an executive officer at Orix, said in an interview.
Currently, Singapore’s GIC Pte holds 65.8% of Greenko, Abu Dhabi Investment Authority has a 16.5% stake and the remainder is held by its founders. The Economic Times reported the deal earlier Friday.
Bloomberg News reported in April that Chinese state-backed investment fund CNIC Corp. was considering buying about a 10% stake in Greenko Group, which was seeking to raise around $800 million by introducing a long-term investor.
Orix is a major renewable energy developer in Japan, and Takahashi said the company aims to build up assets overseas as well.
“In developing markets, we plan to take a minority stake and team up with local and other partners,” he said. “In developed markets, we aim for a majority stake.”
Takahashi said the company is looking at several renewable energy developers in Europe as potential acquisition targets, with a deal size of about $500 million. “We can develop from scratch by ourself in Japan. Overseas, we are trying to boost business through M&A,” he said.
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