Energy major Reliance New Energy Solar Limited (RNESL) will acquire a 40% stake in Sterling and Wilson Solar Limited as a part of its clean energy goals.
RNESL said that it would buy a stake in Sterling and Wilson Limited through primary investment, secondary purchase and open offer. In the first phase of the deal, RNESL will acquire a 15.46% stake in Sterling and Wilson Solar Limited at Rs 375 apiece worth Rs 1,100 crore. In the second phase, the promoters of Sterling and Wilson Solar, Shapoorji, Pallonji and Khurshed Daruvala will sell 1.84 crore shares at Rs 375 apiece. RNESL will make an open offer to public shareholders for a 25.9% stake. If the open offer fails to push a total stake of 40%, Shapoorji Pallonji and Daruvala will sell more stakes to fill the difference. Sterling and Wilson Solar Limited have a total capacity of 11.4 GWp, including the world's largest single-location power plant in Abu Dhabi. It has also completed O&M for projects of 8.8 GWp. The company told the media that it had approved a 66 MWp solar power plant in Jordan. Its AI Husainiyah project is expected to reduce emissions by 50,000 tonne. RNESL has announced the acquisition of REC Solar Holdings at $771 million from China National Bluestar Co Limited. Earlier, RIL announced to invest $10.1 billion in renewable energy within three years. Both the acquisitions are in line with RIL's aim of generating 100 GW yearly by 2030 towards PM Modi's target of 450 GW renewable energy by 2030. The company is transforming its oil, gas and chemicals business with its new renewable energy vision. In June, Mukesh Ambani unveiled its plan for its new energy business through hyper integration, scientific knowledge, technology and innovation, building a business model for clean energy demand and production, and improving the efficiency of its assets and operations. He announced a plan to invest Rs 75,000 crore in the renewable energy sector within three years, including the Giga factories in Jamnagar. These will be a part of the Dhirubhai Ambani Green Energy Giga Complex spread across 5,000 acres to produce renewable energy through various sources. The giga complex will have an integrated solar photovoltaic module factory, an advanced energy storage battery, an electrolyser factory and a fuel-cell factory. It will manufacture ancillary material and equipment for the giga factories. The company will add two divisions to collaborate with clean energy plants and finance the stakeholders. The first is the Renewable Energy Project Management and Construction Division, and the second is the Renewable Energy Project Finance Division. Image Source
