Adani Green Energy (AGEL) has entered into an agreement with Sterling & Wilson Private, a privately held company of the Shapoorji Pallonji Group, to acquire the latter’s 100% stake in two special purpose vehicles that own 75 mw operating solar projects at Telangana for an enterprise value of approximately Rs 446 crore.
Separately, Shapoorji Pallonji Group’s listed entity, Sterling & Wilson Solar, informed the bourses that the promoter group has informed the company that they will repay outstanding loans to the company from the deal proceeds. Sterling & Wilson Solar had earlier given promoter group extension for repayment of loan until September 2021.
The assets that AGEL will acquire were commissioned in 2017 and have long-term power purchase agreements with the Southern Power Distribution Company of Telangana. With this acquisition, AGEL will increase its operating renewable capacity to 3,470 MW with a total renewable portfolio of 15,240 MW. The deal closure is subject to customary conditions, the Adani group company said.
Vneet S. Jain, managing director and chief executive officer of (AGEL), said, “Strengthening our portfolio through organic and inorganic growth opportunities is an integral part of our vision to build a capacity of 25 GW by 2025 and become the largest renewables company in the world. We will leverage the strength of our platform and capital management philosophy to achieve operational improvements and value-accretive returns from the project.”
At 1.15 IST, shares of AGEL were trading at Rs 1,307.95 on the BSE, down 4.2%.
In the separate disclosure to the bourses from Sterling & Wilson Solar, the company said that the promoters have informed the company that to repay the entire outstanding loans, it has put into action multiple plans that included this sale of assets. “We are confident of earlier phased repayments of which Rs 250 crore is the first step in that direction,” a letter from the promoters to Sterling and Wilson Solar said.
The promoters– Shapoorji Pallonji Group and Chairman Khurshed Daruvala– owed Sterling and Wilson Solar Rs 1,148 crore, which was close to the Rs 1,200 crore that the company owes to its lenders. The promoters sold part of their holding in the company in August 2019 with the commitment of using the proceeds to repay the loans they had taken from the company within 90 days. But they went back on the commitment citing a challenging business environment and a revised schedule was drawn. The promoters faltered again and got an extension till September 2021.