ReNew Power to merge with blank cheque RMG
Renewable energy major, ReNew Power has entered into an agreement to merge with blank cheque firm RMG Acquisition Corporation II, the combined entity valuing at about $8 billion.
Jointly, the two entities will be called ReNew Energy Global PLC, and will be listed on Nasdaq.
RMG Acquisition Corporation II is a blank cheque company formed to effect mergers, amalgamation, share exchange, asset acquisition, share purchase, reorganisation, or other similar business combination with one or more businesses. RMG II raised $345 million in its December 14 IPO.
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Gross cash proceeds from the agreement are estimated to be approximately $1.2 billion, comprising $855 million from the private investment in public equity (PIPE) and approximately $345 million of cash held in trust by RMG II, before any adjustments due to potential redemptions by RMG II shareholders.
The proceeds will be used to support ReNew's growth strategy, including the buildout of its contracted, utility scale renewable power generation capacity, as well as to reduce debt.
The renewable energy firm's management, and its current group of stockholders, including Goldman Sachs, the Canada Pension Plan Investment Board (CPP Investments), Abu Dhabi Investment Authority and JERA Co Inc (JERA), who together own 100% of ReNew, will be rolling a majority of their equity into the new company, and are expected to represent approximately 70% of the effective company ownership upon transaction close.
Image: ReNew Power is a renewable energy player in India, an independent power producer (IPP), and among the top 15 largest renewable IPPs globally by capacity.
Also read: ReNew Power eyes merger with SPACs for US listing
