01 Oct 2019
Adani Green Energy signs agreement to acquire solar assets of 205 mw
Adani Green Energy (AGEL) has signed a securities purchase agreement for acquisition of 205 mw of operating solar assets of Essel Green Energy (EGEPL) and Essel Infraprojects (EIL). All the assets have long-term power purchase agreements (PPAs) with various state electricity distribution companies and are located in Punjab, Karnataka and Uttar Pradesh. The portfolio is relatively young with an average remaining PPA life of about 22 years.
“This acquisition strengthens Adani Green Energy’s position as one of India’s premier renewable power producers, with a total portfolio of 5.5 gw, of which 2.5 gw is operational, and the remaining to be operationalised over the next two years,” said Jayant Parimal, CEO, Adani Green Energy. “This is our first brownfield acquisition of operating assets. It expands our footprint in states where we already have a presence and, with our strong operational expertise, will deliver significant value for our shareholders. We remain focused on opportunities that help us create value for shareholders and facilitate the growth of environment-friendly green power in India.”
The closing of the transaction is subject to customary approvals and conditions. The acquisition of these assets is at an enterprise valuation of about Rs 13 billion. However, the existing long-term funding will continue to go on.