Adani Green Energy Limited (AGEL) has signed an agreement with Essel Group firms, Essel Green Energy Private Ltd. and Essel Infraprojects Ltd., to buy 205 MW of operating solar assets at an enterprise value of ₹1,300 crore.
The deal includes 10 operating solar PV companies with a combined capacity of 205 MW spread across Punjab, Karnataka and Uttar Pradesh. The companies have long-term power purchase agreements (PPAs) with various State electricity distribution companies.
Jayant Parimal, CEO, AGEL, said: “This is our first brownfield acquisition of operating assets. It expands our footprint in States where we already have presence, and with our strong operational expertise, will deliver significant value to our shareholders.”
In a statement, an Essel Group spokesperson said, “Our asset divestment process is well within the purview of the agreed timelines with our esteemed lenders. The sale of the group’s solar assets to AGEL is yet another positive step taken in this direction. We have maintained a constant process of identifying the right potential partner for the sale of our precious infra assets and we are extremely glad to sign the agreement with AGEL.”
Commitment to lenders
“The group remains focussed towards its commitment made to its lenders and is furthermore confident of completing the overall repayment process.”
The group is also constantly working towards arriving at a closure on the divestment of an the additional 480 MW of solar assets portfolio. The transaction in cash is expected to be completed by October 15, 2019, said AGEL in a filing with the exchanges. Post completion of the acquisition, AGEL’s portfolio of renewable generation capacity in India will stand at 5,500 MW, with 2,403 MW operational projects and balance 3,007 MW in the development stage.
Shares of AGEL fell 2.25% to ₹43.35 on the BSE on Thursday.